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I think this shows the result when a few things happen:

1. You drop your primary SKU by $50 in the first 28 months.
2. A competitor comes in and starts offering added functionality for not much additional cost, even though you have a game advantage.
3. For some inexplicable reason, your supply channel is suddenly dry.

MS better pull their head out and pull it out fast if they want to keep the PS3 at bay in North America. They need updated SKUs, a price drop, and GTA advertising every place with enough room to slap a poster.

Other than that, things are really looking up for the PS3, though the real battle has yet to start this year. We'll see if MS has the balls to start testing Sony's mettle in the price war when GTA IV hits.

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