I don't understand why so many people bring this faulty logic.
1. If one company reduces price the others will to, thus reducing any big change in power.
B. Reducing price only allows you to sell to the next group of consumers on the price tree.
In the end a $100-150 Wii/360 Core would sell just as good, if not better than a $200 PS3/360 Elite. There would be no major shift in sell through. Realistically, PS3 was always slowly gaining on the 360 as it always sold more when launches were aligned. And that aligned gap is increase as the prices become lower as people can now afford a PS3 in the mainstream. PS3's price altered its normal curve a little, but it will also die down quicker as 2011 rolls around and new consoles are mentioned and released in 2012.
The Wii however, is unchanged and is simply following a normal life cycle curve.
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