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The significant 200$ price difference will not exist. The PS3 at less than 200$ price difference than the 360 actually outsells the 360 (this was proven last year). The 360's advantage will last as long as it can maintain a 200$ or greater price difference.


The 360's advantage was never being $200 less than the PS3. The 360's main unit until it hit the $200 mass market price was the Pro (which was $400 and now $300). At the time of the price drop last year for PS3 it was the SAME price as the 360's main unit (the Pro/Premium). The Arcade never existed at all until the 360's pro unit finally got a major price cut after 2 years on the market. All the 360 really needs is to keep adding value and remain at the $100 less point to outsell the PS3.

Last year after the PS3 pricecut, MANY people bought it for the incredible blu-ray player value it represented. Now that blu-ray players are so much cheaper and you can get a 360 + Blu-Ray for the cost of a PS3, the PS3 lost it's momentum. By the time the PS3 can cut the price by another $100, Microsoft can cut by $50 at the least, and maintain a $150 price lead. Not to mention the PS3 still will not be in the mass market price of $200 which will continue to hurt them regardless of how "close" they are getting to the 360's price.