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uber said:
other than extreme price cutting and natal being the messiah of video game features there is no way the 360 can stop the ps3.

the launch spike of the slim compared to the spike of the wii price cut is more evidence that there is a huge demand for ps3s.

this demand will cause fence-line buyers to go with the ps3 over the 360 when the decision is close. since the wand and natal do pretty similar things, it is not reasonable to conclude one will have a more significant impact than the other. m$ does not have the new ip's to move units like sony does.

this leaves price-cutting. i don't think m$ will drop the price any time soon. when they do, i think the cut needs to be at least 100 dollars in order to substantially affect the sales war. i find this doubtful.

So you don't believe Microsoft can redesign the 360 into a new more reliable (perhaps smaller) revision and relaunch with a Natal bundled package at a competitive price point that will do everything the PS3 move did.  The only reason the PS3 slim had such an effect is it had to stay at the old price point for far too long because the previous price cut Sony did was a panic move to stop the PS3 being killed off early on this generation.  All this price cut has done is given Sony a chance to compete and perhaps eventually beat Microsoft at a cost of huge profit losses.  If Microsoft get a 360 out there next year at $249 with Natal bundled then its all over for the PS3, and you can quote me on that.  Sony just threw all their cards on the table this generation and have absolutely nothing left, even Bluray players will be budget next year taking another source of buyers away.

For the Natal doubters, fair enough it may not live up to all the hype once in gamers hands but the Wii has proven that a product doesn't have to be perfect to get people to buy, it just has to get people excited enough to tell everyone they know about it.