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i don't think 360 needs a price drop to compete with PS3. this is more of PS3 holding its ground while gaining on the comp. even if PS3 out sells 360 MS won't drop price.

MS however is looking for profit so a price drop from them is unlikely. wht i do see from MS is them phasing out the arcade model while releasing a new model next yr for $199 or they maybe able to to drop price on the $299 model to $199.(all speculation)

even if PS3 out sells 360 MS won't drop price.

i think PS3 can manage 15m a yr for the next 3 yrs because of there current price point which is something MS gave away with the arcade model.