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The numbers actually show it's the Xbox that's been gaining the most market share in 2009 at the expense of the other two, largely due to carryover effects from the price reductions. It was exactly when the price cuts were implemented that the platform started selling better.

And I don't buy that next to nobody is buying Arcades for $199.

If you were a late PS2 adopter for example, and just want to play the games on the cheap, ignoring online, a $199 Arcade and a huge library of cheap and discounted games both new and used makes it an ideal budget gaming platform.