If the rumors are true, Sony will comeback

[Ausfalcon]

I think a lot of casual gamers who had a PS2 but were unwilling to shell out for a PS3 have already moved on to Xbox 360 if they really have wanted to move on to HD gaming.  Simply because as a casual gamer you want access to a wide catalog at a reasonable price.  And for those who have not its widely believed Microsoft will match any Sony price cuts to keep it that way.  A truly casual gamer is not likely to have an Xbox 360 and a PS3.  And ones still on a PS2 only are probably so price sensitive that a price cut on Xbox 360 will likely be more attractive to them than a price cut for PS3.  Also casual gamers are more concerned with a bigger catalog rather than specific AAA titles and they are more swayed by the general media, which has reported widely for years now that PS3 is #3.  

So I'd like you to be right, more competition is better, I prefer Sony as a company in general, but I don't think that you are.