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Sony would have to release a pretty gimped model of the PS3 in order to compete with the Arcade in pricing! I mean the 360 has the added price flexibility that they only use DVD in the console, which is going to be amazingly cheaper than the Blu-ray drive in each and every PS3, and i'm sure there are other comparisons where the 360 comes out cheaper (to manufacture) so i don't think at the moment that it is possible!