I think Squilliam has done a pretty decent of job with the tables. After all, these are all possibilities, but I think the PS3 becoming more affordable will have a larger impact on PS3 sales then the 360 had.
With the amount of Money both brands have lost in this division, it is hard to say if MS can afford to give another price cut or not. All depends what they are after; profits or market share. The winner can be the one who either, gets both, or what they were aiming for (market share or profits).
As someone has pointed out on this site, there is also the possibility of a slim 360 and a slim PS3 to take into consideration and then there is a very valid point someone else made to how much MS can drop the cost of a 360. You drop the value of something too much and it loses its appeal sometime.e.g. If everyone can afford a Ferrari, there would be nothing special about it anymore.
MS are more likely to offer more lucrative bundles then cut their prices some more to match PS3 price cuts. The reason behind it is simple; even at the current price of both consoles, the PS3 is still shipping good numbers.
As for the economy - yes, it is pretty bad, but statistics show people are still spending money on entertainment. The entertainment division has not been hit so hard. It is the more expensive purchases such as; houses, cars and commodities which have been hit harder. The money people would have spent on going out, or buying a house is now being spent on smaller purchases which keep consumers entertained and happy. A feel good factor for the recession at hand.
Both, the 360 and the PS3 will do well this and next year, and both will be around next gen to yet have another console war.
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