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The PS3 has the obvious advantage of being a Blu-Ray player which clinches it for people not yet decided on the PS3 or 360. The PS3 also has an obvious advantage in Japan where the 360's market is virtually non-existant and in Europe where the Sony Brandname is second only to God's.

The 360 is going to need another price cut to stay ahead of the trend, It clearly can't compete with the PS3 on a level playing field of price.