If Microsoft matches Sony price cut, would the PS3 still do "gangbusters"?

[thx1139]

Seihyouken said:

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.

Oh the launch argument again.  Doesnt hold water I am sorry.  The PS3 didnt have the year of waiting for the release of the successor to the most successful console ever.  The 360 did.  What was Sony talk.  Wasnt it something like "The next gen doesnt start until we say it does".  The press played this up, the fandom played this up.  Not until E3 did a chink in the mighty PS3 armor get a dent when the price was announced.  After a few weeks things started to go back to crowning the PS3 as king again, because at the TGS PS3 will change the price.   TGS came and the 20GB was announced and the dent got a little bigger.  The 360 was considered by many a console that would die soon after PS3 launched.  This really had an effect on the first year plus of 360 sales.  When the PS3 didnt take off and the Wii did the market changed.  PS3 has never regained the aura it had before release.