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I agree with most parts. I actually think ps3 will outsell (not catch) the 360 worldwide. PS3 will sell so well in Europe and Japan that it beats the 360 in worldwide sales. (Maybe cuts the gap in half or so) 

The 360 will still outsell the ps3 in America, but the ps3 will begin to close the gap.

I do agree that the ps3 will have price drops again in 08'. The ps3 will be dropping the cell size to 65 nano and then later at the end of 08' to 45 nano (also going to outsource production which will lower cost even further).

Also, the blu-ray diode use to cost $125 a console, it now costs around $8 a console...that is a $117 savings right there alone. PS3 cost to manufacture is dropping much faster than anyone has anticipated. 

Obviously, Sony has already lowered the cost significantly...the lower cost of the blu-ray diodes, the outsourcing of cell production, economy of scale, and the smaller cell chip size will allow Sony to lower the price again before the end of 08'.  They will still be losing money, just no more than now and software increases will help to offset this loss...profitablility may show itself half way through 09' year.



Well, I now only have access to a PS3 & 360...Plan on buying a wii soon (lol, if I can ever find one available!) but will probably wait until some of the major RPG's come out like Dragon Quest & Tales, etc.

Anyhow, I'm so far behind in games to play that I'm not in a huge hurry (lol, haven't even gotten a chance to finish God of War II yet!)