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There are two reasons why the 360 seems to be losing appeal. The first is because it's saturated the market at its current price point. We saw the same thing happen with the PS3 when it cut it's price in Q4 of 07 and saw much lower figures a year later at the same price. The second reason is because the PS3, which is in direct competition with the 360, has gained significant appeal with it's latest price cut that has stolen momentum from the 360.