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Well i wonder will price cut have that much effect? If Sony slashes the price of PS3 by 50$ or 100$ Microsoft can just cut the price of Xbox 360 Pro (and Even the Arcade) even lower and they still will be significantly cheaper, Sony needs to somehow convince people to pay that extra for their console, because majority will still pick Xbox 360 because even after PS3 price cut Microsofts product will be cheaper.

I agree that in Japan they should think about it now, since PS3 has a chance of gaining momentum.