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May i ask why you don't think MS going to £99 with Natal and a new design will not dominate PS3 sales?
The 360 last got a proper price cut nearly 2 years ago. In US the 360 is still outselling the PS3 and in europe it seems neck and neck. The place that makes the gap in others seem big is the "other" section. Which could mean asia and places like that. Overall we currently see a gap of on average 20k a week between the two. A huge factor in this is the sales in Japan i.e the PS3 has been selling around 25k a week while 360 has sold like 3k a week. A big gap there, and will always be that way.

Point being US and Europe are the battle grounds and Sony since the start of 2010 have had the big guns out to try and get those sales. It has worked a dream. The PS3's are selling far more then ever before. But that is to be expected, we are only 5 months since the big price cut and new design. But the 360 is still hanging in there without really doing anything. For about a year MS has not really done much in terms of the 360. This year seems to be the year they have saved up for and plan on going all out.

If they drop the price to that magic price point, have Natal for the £25 expected and have a new model then im sorry but i don't see how it won't have a huge impact on 360 sales.
£99 is very cheap. Lots of current 360 owners would trade in their old ones to get it, i would because it could mean paying something like £50 with exchange from your old one. That is the equivelent of a price for a new game.

Then you have all those potential Wii owners who want something a little more flashy to play while doing the gimmick thing. Like for example if it can teach you how to do kung fu or some martial art while tracking how well your doing via your movements that will have serious appeal to people. It is like that matrix bit where they give them the talents via download. The opportunities are endless.

If that happens, which it looks now certain it will then i would expect 360 sales to utterly crush PS3 sales, i mean Wii type levels. If 360 is only around 20k or so a week now behind PS3 while also selling more in US and UK then a cheap version will give it an even bigger lead. Which would have to translate into bigger sales worldwide.