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Jumpman said:
^^good point.

and as said before, you're assuming that neither of the other two consoles would get price drops in response.

http://www.nforcershq.com/article7237.html

With each Wii only costing $158 to make, Nintendo could drop the price low enough to make any PS3 price-cut (even to $300) look laughable.

That's $198, but that some months back. Odds are it's less now. However, with Wii's still selling above market price on eBay, it is unlikely that a PS3 price cut will have much measurable impact (though there is no way to tell how many people, seeing Wii's out of stock for the 65th consecutive week, would break down and buy a PS3). As soon as Wii's start staying on shelves, expect to see a price drop to $200, maybe even adding another game for extra value (Zelda, Metroid or Mario would be good to pair with WiiSports, in order to appeal to traditional gamers).

The 360 should be able to do a $100 cut on the Premium and Elite to match Sony, and get the Arcade down to $199. Again, a free game or two (real ones), and maybe some free DL content could sweeten the pot.