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Video Game lovers are very similar to sports lovers. When your "team" goes on a winning streak, you shout it to the rafters. Sony just went on a winning streak. The PS3 Slim will allow them to come closer to closing the gap with Microsoft over the next year. Congrats to them.

But if you think Microsoft wasn't aware of this, you're insane.

Look at the pattern:
Hold current pricing as long as possible.
Wait for Sony's next move.
Delete the Pro Sku.
Drop the Elite pricing.
Release a strong holiday lineup along with a Halo Expansion to appease the core fanbase.
Get through Christmas with strong sales.
Sony will outsell them this Christmas, but Microsoft will do well.
Release heavy hitters in the first three quarters of 2010 to satisfy the fanbase.

Then...
In Q4 of 2010...

A NEW XBOX360 Sku with Natal embedded.
Huge marketing blitz.
Halo Reach.
Fable III.
Gears of War 3 (if the 2-year development stays true to form).
And a price drop through all three Skus.

Microsoft has a 8+ million console lead.
They'll give up 2-3 million of that lead to prepare for the onslaught.

They feel that they'll recover that IN SPADES a year from now.

So the Sony fans should rejoice. For now.
The PS3 is new, fresh, and affordable.

But I'm just afraid that it'll look pretty dull a year from now.

Aesthetically and commercially.

Remember, Microsoft are MASTERS at marketing.

Next year will be a BEAST for Microsoft.

Natal PLUS Halo Reach? WOW.