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Well a $149 Arcade would mean a $249 Elite. I think the combination of these 2 things plus the holiday games bundling would be enough to outsell the PS3 again. Maybe not outsell their last year's holiday performance, but then again, we'll see. The economy hasn't gotten better yet, so $149 may be a very attractive price point.

I'm almost 100% certain MS can afford to do this cut. The only thing that may be holding them back is their plans for 2010 holiday with Natal.

Wii still wins the holiday and year.