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1. PS3 price reduction will not erase the changes that the 360 caused this holiday season. I doubt the sales difference would be where they were before MS made changes. Multiple reasons. Momentum and more and more people will know friends that have 360's and they will get one as well. RRoD is becoming ancient history with Falcons and Jaspers. 360 will still have a much easier entry point.

2. 360 price reduction will not be immediate counter to PS3 price reduction. MS will wait until the right time. I expect $149.99 Arcade, $239.99 Pro with 120GB HDD and $319.99 Elite with 250GB HDD.



Its libraries that sell systems not a single game.