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Sony has shown a staggering propensity for poorly gauging demand for their console. It was one of the major reasons they were forced to cut the price of the console twice in one year. I would in fact the clearance PS3 sales that are supposedly going on right now would be further proof. That Sony has overestimated their success. I wouldn't wager against that kind of proven track record. They are perpetual optimists.

Price alone is not what has driven the 360 to outsell the PS3. That is merely fanboy bullshit. They think if they say it enough it will somehow be true. The truth is that the PS3 and the 360 were in a pretty fierce struggle prior to the price cuts. The justification for that can be found in things such as library, service, and exclusive titles. Those things do not go away with a price cut. A price cut may make the market more competitive.

Which as other posters have pointed out is the Achilles heal of these arguments. These events are not taking place in a vacuum. How likely do you think it is that Microsoft and Nintendo will not respond. Further more you have no idea how they will respond. Your playing with less then half the necessary information. What happens if Nintendo reduces the price of the console, or they unveil a new peripheral. What will happen if Microsoft suddenly unveils a few high end games that nobody knew about, and will all land in November.

The irony is that everyone has gone to town on these rumors, and if they are the result of what could be called shoddy corporate security. Then the competition has a pretty good idea of what Sony are up to, and that means they can actually ambush Sony. Don't laugh both Microsoft and Nintendo have blindsided Sony pretty effectively this generation. The people that should be a little afraid are the people making bold claims. How many times has the competition snatched the rug out from under your feet so you can go face first into the floor.

It is ridiculous to only work with half the data, and to draw one and only one parallel. That is a real recipe for crow eating, and since I am telling you this now you don't have the excuse of well nobody saw that coming. I am saying I am someone, and I can see something coming. Why well both Microsoft and Nintendo are actually fairly quiet. You know that scary kind of quiet before something big happens.