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The PS3 is not a console that more or less appeals to the majority of gamers so beating the Wii is next to impossible at this rate.

Against the 360, the PS3 is faring decently. It is not as if the 360 sold significantly better at $400. Therefore, some sort of price cut is most likely a step in the right direction. The toughest decision is when to deliver the price drop for the best results.

If that does not prove effective, then Sony has to either improve their marketing and gaming division or limit Microsoft's third party support.