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Alby_da_Wolf said:

^^
By 2011 PS3 will already be able to sell at less than $200, so it would be in a market and segment different from newer gen consoles, more similar to what was PS2 at XB360 launch.
But as I wrote, there are more immediate dangers than Sony for MS: Nintendo could currently do what it wants with living room computing market, and if it reckons it's lucrative, it will grab it. And MS can't really do anything right now, only weakening Wii first it could counter Nintendo moves with some hope of effectiveness. And Wii won't get weaker until a very large majority of households will already have HDTV's, so anticipating too much XB720 would leave it defenseless to the fury of Wii in the immediate, and after, to be superseded by a more powerful and less expensive PS4 released later in HD market.

The PS3 will never (and by never I mean throughout it's life cycle) be able to sell for less than $200 without some major hardware removals.

Their production cost started out at about $800-900 and has since lowered to about half.  But where the 360 will end at around $99 in the last days of its life, the PS3 will end at around $199, always beinga bout twice as expensive.  This is because of the technology included in the PS3 that will never get to the cheap levels of the 360.  When an item drops in price it eventually hits a wall where it can't go any lower.  The more stuff crammed in and the higher the initial price means the higher that wall will be.

Also Slimebeast said it very well regarding the current pricing of the 360 in relation to launch.

A new Xbox in fall 2012 at the earliest with 2013/2014 most likely.