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Pachter is talkin' out his ass with this one. Sony can't even afford to drop the price of the PS3. Even if they did, Microsoft could just lower the price of the Pro and Elite - they have plenty of wiggle room. So sure, PS3 sales will increase with a price drop, but all MS would have to do is drop the price the two top 360 skus and I'm sure it'd maintain a sales lead over the PS3. Even if sales are neck and neck, the PS3 couldn't pass the 360 in overall sales installed base.