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numonex said:
PS3 is unlikely to overtake X360 in total worldwide sales within the next two years. By the time PS3 overtakes X360 in 2011 the new XBox will be out and it would not matter.
There is currently a 6.24 million gap of X360 over PS3 and it is increasing. It will be over 7 million gap by the end of 2008.
X360 has increased a 5.3 million lead back up to 6.24 million lead within the last three months. 30 August 2008 to 22 November 2008
PS3 price cut will come too late and by then it will be approaching 8 million gap behind X360 in mid 2009. X360 price cuts would come into effect immediately after PS3 2009 price cuts.

On the matter of price cuts, I think they are getting less and less effective. In 2007, the 360 beat the PS3 weekly, but late 2007 and up until late 2008 the PS3 beat the 360. I do beleive the inicial boost snaged people who were on the edge. They had interest, but they couldn't afford it. Now, it may be a case top where most of the people who wanted on got one.

I think it may this that prevents most price cuts from working (and I think Microsoft and Sony understand this). Eventually, you'll snag all the people who wanted you system, but could not afford it. It hit the highest sales increase. Now they will have to sell to the people who have no interest (which is easier said then done).