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Michael-5 said:

Microsoft won't let Sony beat them because if the PS3 outsells the 360, MS gaming reputation will be hurt badly. Sony doesn't want to loose either, but MS has larger pockets, and will always retain Americas dominance (so sales will never strongly favor one HD console over the other). I mean just look at Kinect, on it's own it has enough selling potential to keep up with the PS3 Move, but MS still decided to throw a 100 million dollar marketing budget at it.

So assuming both successor consoles are launched on the same year, I would give this range on the sales difference. Minimum 1 million (PS3 outsells the 360 by an average of 20% in the next couple years), Maximum 7 (360 outsells the PS3 by an average of 20%). Both options look equal to me, I know a $200 PS3 should push sales, but a $100 Arcade 360. Thats more tempting, especially since by that point talks of a successor console will be happening.

I don't think that would happen. See what the 360 has done compared to what the original Xbox did. I think MS will be fine and they will continue to do well if it happens.