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@Glover : You could add 'better brand recognition' and 'more inovation' too...

The only thing that MS still has over Sony is money. And that's only because of their 2 old cash cows, Windows and Office.

The problem is those cash cows are slowly dying : revenue drops fast, many PC are now sold with Linux, people use OpenOffice in many corporations.

Since everything else failed (Xbox 1 fiasco, Vista, Zune, yahoo bid failure, RROD fiasco...), they're in trouble.

MS is clearly heading south now. Most financial experts are selling MS share...

@Garnett : Of course the 360 price cut is due to the incoming PS3 price cut. The problem is it won't change things that much for MS since the 360 is already dirt cheap.