If that happens then MS will just react by dropping the same amount for their consoles. Factoring in that Sony is bleeding more per console sold, and MS has deeper pockets, this will be quite unsustainable for Sony.
Unless this scenario is set in the future when hardware prices are much cheaper, but by then, its a little bit late to retake much of the market share by then since the video game market would already be saturated.
The only reason Sakurai allowed Snake is because he was already a clone
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