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The $399 ps3 was outselling the $279/$349 360. A price cut to $299 would certainly see this happening again, but since the ps3 would be on par with the 360 Pro at that point, it would probably be outselling by a good bit more than it was over last Summer.

That's assuming the price drops to $299 and that it happens soon, of course.  It'll help to erode the 360's lead, but anything beyond that is a lost cause at this point.