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Sony needs to sell the PS3 for at least $199 to beat the Xbox360 in USA. And they needed to do it already. I was in Best Buy during the xmas season...I overheard two sets of parents discussing which console to get and it seemed to come down to price. The parents really didnt know much about the PS3 or the Xbox360...but they new that one was $199 and one was $249. The $50 price cut (from $299 to $249) that Sony gave the PS3 in 2011 was not enough...should have been a $100 cut. I think a $199 PS3 would have pushed hard up against the Xbox360 over the holidays in the USA. And I think it may be too late for the PS3 to gain back respect in the USA (even if Sony drops the price to $199 today). Sony will cut the price of the PS3 to $199 in 2012, but it will be too late by then...no one will care.