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The only way that X360, or more likely, the PS3 could possibly catch up would be if the 'fad' scenario turned out to be somewhat true.  And sales in 2009 and 2010 start to fall for the Wii and with the PS3 lower price, migrate to that box.

While I don't consider it too likely, I don't believe it will matter either.  The reason?  Just as PS3 might start to really catch on fire with the cost conscious crowd that wants HD at a low price, here comes 2011 with the next generation boxes.  And you know Nintendo isn't going to charge an arm and a leg for their next box either.  Not when it was drilled in everyone's heads, to go for a better box than last gen, but keep it < $300. 



Torturing the numbers.  Hear them scream.