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SnakeEyez said:
  a PS3 price drop will also have a dramatic effect.

 

That's difficult to say. On the one hand it was the perfect timing, on the other hand its price finally activated the arcade Xbox 360. Previously the Arcade meant nothing but since the price cut it sells  about 50% of all Xbox360s.

It seems to attract now casual gamers and the PS-3 might have difficulties to attract this market even with a 299$ price tag.