I guess I have to admit the X360 is pretty much set to keep it's weekly first place through the rest of this generation. Software sales are another matter...
Whenever the week comes where PS3's price is cut to $199, I'll eat my hand if PS3 doesn't outsell Xbox 360 that week
I would be not so sure dude. Right now the PS3 still seems to be pretty expensive to produce, like some $280 until it reaches the shelves... by the time it is able to get down to $199 it will be pretty much irrelevant like when the PS2 got to $99.
Worse, it will be time for Wii 2 to release. Which hope Sony could have going against something likely to release with as much hype and support as the 3DS is having right now?
Did he say "will outsell everything else" ? Seems like he said, outsell the 360 to me. So, while you may be right and by that point the PS3 may be irrelevant (though I don't agree with you I think the $199 price drop is due in 6-8 months), but, if that is the case, the 360 will probably be irrelevant as well.
But so will the Wii. It's on a free fall right now. It could end up being a war of the dying, but I think X360 could still be on top. It will be irrelevant on the bigger picture though. Places this gen are pretty much set.