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morpheusx said:
a $300 console is still a $300 console, XBOX has had that price point since launch.

Yet the fact remains that the PS3 has outsold the 360 by over 3 million in the same timeframe since launch, despite the fact that it's never once been even close the the price that the 360 launched at.

Microsoft better hope that 360 sales never slow down, because the moment they do, PS3 will overtake it in worldwide sales really fast. Unfortunately, the 360 has maybe two $50 price cuts between now and when the next Xbox hits the market, which will likely not be until Q4 2011 at the earliest. 360 sales will begin to dry up without frequent significant price drops to keep sales boosted. We're already seeing the early signs of this with the PS3 outselling it in the past couple months despite being at least $200 more expensive in every region.

The same applies to PS3, to a much lesser extent. Now that Sony just about has the PS3's pricing under control, they'll need to issue a consistent stream of price cuts over the next 3 years.