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Sony was going to succeed anyhow, they had a terrific product and just needed to cut the cost. EU sales should at least double, if not more.

But if they launch a $399 PS3 in the US, then things get very dicey... for Microsoft. (The Wii will do fine, it's a different product for a different market.) BluRay and HDTVs are now finally affordable to big chunks of the US population, and the PS3 now has a ton of decent games.