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Well ,for now its a rumour .It could help a bit 360 sales but not so much .In Europe 360 is just "the other and worse " machine ...not by slashing its price 50 euros they will get people buying it in droves .It may increase the sales for one or two week when some hesitant people finally decides to buy it but nothing in the way of sustainable sales .

And if Sony responds and lowers the PS3 they are dead .