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psrock said:
I think people have learned their lessons though.

Only thing, MS is not going to let their lead vanish so easily, I expect a big price war next year, but the scariest thing for the 360 is very simple :

$199 PS3

That would also be the scariest thing to SCE's bottom line.  With all the "profitability in 2010" talk we're hearing, I doubt we'll see another $100 loss leading drop next year... maybe $50, and that's even a big maybe.  Expect more value-added moves next fall instead (HDD upgrades, software bundles, Swand bundle, etc).  I think we'll see the same for Nintendo (NSMBundle?), and maybe even Microsoft (ie: Arcade phased out, $199 Elite).