Rpruett,
Two things MS not Sony has the upper hand on pricing because the 360 is profitable as a hardware platform and the PS3 is not. Any cut of the PS3 anytime soon is more losses for Sony.
The next generation will arrive before the PS3 will have time to take advantage of the sub $200 price level. The 360 is actually just starting to take advantage of this level.
Lets look at the upcoming years.
First off establish that the first next gen consoles will arrive fall 2012.
My guess is that fall 2009 the prices will be as follows:
360 $150, $250
PS3 $350, $430
fall 2010
360 $130, $200
PS3 $250, $330
fall 2011
360 $100, $180
PS3 $200, $280
fall 2012 - Next gen consoles arrive.
Its libraries that sell systems not a single game.







