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The facts are if 299$ dollar PS3 does have any significant impact on 360 sales, Microsoft is the company with tons of cash and they can easily counter the PS3, Slashing price of Pro/Elite would be a first thing, adding new bundles , Live membership , Netflix bundles (with some sort of free Netflix for few months). Slim model there are loads of options for MS until this generation is finished thats why i believe they will be on a market for a while.