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$149 XBox 360 Arcade is the answer to the $299 PS3 Slim Price. I believe the XBox 360 Arcade should be priced at half the PS3s value and this will give the edge slightly back to Microsoft . But the next price cuts will be held off for 2010 and just see how it all unfolds as the 8 million lead heads towards 5 million then Microsoft will react with more price cuts.

$299 for a three year old PS3 is still a fairly high price to pay. The design of the PS3 Slim looks cheap and nasty. Consumers are strongly influenced by price and Sony has strong brand recognition among European and Asian consumers.

Halo 3:ODST may give the 360 some extra sales during September/October - even if the console price stays unchanged but November the X360 price should be dropped to pick up some more sales. 360 should continue to win the North American sales region with its strong following and cheapest price points.