With the steep decline in current gen, I think it shows that to cushion that effect they need to release a new console (Sony/MS).. I think unless something goes horribly wrong both companies will release a new console by the end of the year.
I would also expect a price cut before the end of March-May (Sony), if releasing a new console, would be silly to do it later in the year and compete with their new product. Also surprised that they haven't released the slim with no disk in the USA yet, so expect that to happen at some point. It was selling for £135 in some places in the UK over Christmas.
I think Sony could stabilise their sales a little with a price cut, but the gen has been going on for so long, it may be too late to make a significant impact except at a christmas period like the Xbox.
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