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Any price cut by Sony could be matched by both competitors. Nintendo has plenty of profitability to trim a bit if their staggering sales [outside Japan] ever slow down. Microsoft, by all accounts, is most likely profitable, breaking even at worst on the 360. They have both the cash reserves, and the stomach, to counter any price cut.


Sony is very badly positioned for a price war and they know it. What Sony fans need to worry about right now is MS turning the knife and dropping their price before Sony, forcing them to either lose more market share, or start taking big hardware loses again.