IMO Sony messed up last year...there was no need for a price cut last year. The system was selling well and it would have continued to sell well given its momentum irrespective of price. Not only does that price cut make a price cut now less possible it also added to the bad financials as sony made a point to mention the price cut as a factor for losses.
Now Sony have new models and are probably not in any position to make a cut. And a price cut this holiday in conjunction with the new model would have been more effective. It would also be a way to combat the WiiU sales.
In saying all this i still don't get the point of the 12GB model now....the only explanation i can come up with is that Sony have gone and increased the price because of their financial situation.
And as for dominating the holidays...i would say no. When last has a single console completely dominated the holidays? Sony/MS were probably tied last year, same thing happened the previous year. Before that the Wii and 360 were battling it out. It was only about 3 -4 years ago where we saw the Wii dominate sales. I think its gonna be a looong time before we see another console completely dominate.
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