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ZorroX said:

1) I see Arcade 149$ and Elite at 249$ next Christmas, yes.
2) 99$ Arcade won`t be here untill atleast 2011.
3) Even though, PS3 is kicking x360 ass right now, x360 still has a huge lead and a Natal thing next year, instead of 99$ Arcade.

Also, other thing, even at 99$ Arcade, you still won`t be able to play Uncharted 2, Killzone 2 or LittleBigPlanet and other games. This mean, that after some point, price won`t matter that much.
And in late 2011, PS3 will probably cost 199$.

As much as I enjoy Uncharted 2, there are more than enough 360 games that aren't on the PS3 that Arcade owners would enjoy.

With a $99 Arcade, you can play:

Gears of War 2

Halo 3 ODST

Forza 3

and the list goes on and on.

AND - you can also play these fine MP hits:

Modern Warfare 2

L4D and L4D2 (PC too)

RE 5

Mass Effect 2 (PC)

Borderlands

and a slew of other stuff. Even if they opted for LIVE - $40 max at Newegg, though I have never paid over $30 a year for it, you'll still be coming out cheaper than buying a PS3.

Folks enjoy gaming with their friends. If you have more friends with a 360 than a PS3, you'll likely go with a 360. Sony killed any attachment to the PS2 for folks by axing backwards compatiblity.

In the end, it's your opinion and mine. We'll see who is right.