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richardhutnik said:

How many of the console sales of the 360 are the arcade units vs the elite?  The PS3 and 360 are the same price, and the 360 outsells the PS3 in America, while in Europe, the reverse is true.  There is the arcade unit though.  But, the prior post that needs to be noted argues that somehow the price cut of the PS3 will NOT be matched by Microsoft. 

Want to go into how the arcade unit counts for the bulk of the 360 sales and also follow up that somehow Microsoft WILL keep the price points the same if Sony dropped theirs, or somehow, that it is just a magical $50 to $100 cut in the PS3 price IRREGARDLESS of what Microsoft does that will SOMEONE mean that the PS3 will somehow end up with Sony beating Microsoft in the Americas month after month?  It isn't happening now, and there is little basis for believing that just a simple price cut alone is going to change things.

Just for argument's sake let's say the Arcade only amounts to like 15% of 360 sales.  I would say it's probably a little more, but let's just go with 15%.  Now if we take 15% off of last week's sales in Americas, the 360 would have only sold ~20K more than the PS3, instead of ~35K.  While in EMEAA the gap would have been more like 35K in Sony's favor, instead of only ~25K.  I'll just asssume the gap in Japan would have been the same.  The fact is, without that $199 Arcade, the PS3 would have probably been ahead by ~50K, instead of only ~25K.  Which makes it foolish to act like the Arcade doesn't factor into this.  I mean if the Arcade sold so little, don't you think MS would have taken it off the market and opted for making more profit?

And I don't recall anyone suggesting that MS won't answer a PS3 cut.  Of course they would.  But I doubt Sony will move first on a price cut with the way sales are looking now.  But they may surprise me at E3.  Either way, both Sony AND MS will most likely be dropping the price of their consoles by $50.  But thee fact still remains that there is more demand for the PS3, even with the 360 having a model that is $100 cheaper than it.  So naturally a $50 cut for both entry price of the PS3 and the 360 Elite is going to favor the PS3 more.  This is why I think when the PS3 does drop to $249, it will start selling on par weekly to the 360 in Americas.  Definitely not the exact same amount, but I doubt the gap will normally be ~35K when it happens.  and when tyhe PS3 finally gets its own $199 model, maybe in 2012/2013, it should start selling better than the 360 in Americas.