The 360 has only two options now.
1. Drop price
2. Make new AAA IP's that can rival big Sony releases.
Option 1, depending on how much Sony has dropped costs of PS3 development, might be bad if Sony could retaliate with an equal price drop.
The PS3 at $299 and 360 at $249 could be bad news because it would cause a huge increase in sales, with pricing currently being more of an issue for PS3 than 360. The increase might be much more in Sony's favor than the 360.
#1 would be better if #2 was true.
But who, at this point, would really make a 360 exclusive without huge compensation? The 360 has shown that most epic titles would have to be shooters, but it would have to surpass quality of COD4 to be worthy of good sales. It would also have to surpass games like Resistance 2, Gears 2, KZ2, etc to get the attention it needs to be AAA. Its a huge hurdle to overcome. Too many good games will release this year, including a good amount of IP's that head up the best selling ever category. (GT5,GTA,FF,Gears,MGS)
It really comes down to how much Microsoft is willing to pay to win this console war. Will they lose profitability and pay off developers to maintain a lead of a few million consoles?
Its about potential of consoles, and right now the PS3 has potentially the best games of this generation, potentially a UI that is revolutionary, potentially the only HD format disc format built in, and potentially has all of this for a production cost within $100 of the 360.
The 360 won't die off, but unless it can pull off a MUCH stronger year this year without Halo 3, and with a more competitive PS3 in both pricing and AAA software, I would have to say that the 360 is in trouble.
Just my opinion though.
