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I think Squilliams logic makes perfect sense. If the PS3 were to drop the price (which we have no idea how much it would be, when it would be, or how much effect it would have) Microsoft could easily drop the price and bury Sony in even heavier losses.

It did have a great 2008 up until recently, but the economy has dropped much over 2008 alone, and as of late, Sony is in a bad spot to be in. Unless the economy does a 180 in 2009, the PS3 will be facing a hard year indeed.