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Well if it was the Elite vs. the PS3 at $249.99 vs. $299.99 respectively, then it wouldn't do a whole lot. It would definitely reduce the rate that the PS3 will be outselling the 360 from now on, but what Microsoft really needs to do is reduce the price of the Arcade. A $149.99 360 vs. a $299.99 PS3 is a battle that Microsoft my have a chance at winning, if only a slim chance.