A relatively cheap PS3 Slim is inbound. Let's talk Microsoft's response.

[wholikeswood]

Slimebeast said:

Xbox is doomed to third place now.

But for damage control MS should drop the X360 120GB to $249 asap, and the X360 Arcade to $179 in North America.

The European prices should quickly be dropped to €199 for the X360 120GB, and Arcade to €149, or it's sales will drop like a sack of potatoes in countries like France, Italy, Germany and Holland.

That should be Spain rather than Holland.