Some analysts are making a valid point. The real danger for Sony ISN'T that MS might massively outsell the PS3 (though that would suck for Sony), because that probably wont happen in Europe. The real danger is that the momentum that Sony were just starting to see could be halted. It took Sony a couple of MASSIVE price cuts to bring about that momentum (one in Europe) and it would be very bad for them if it was arrested this early.
Microsoft is aiming to force Sony into cutting the price early this year, as it is unlikely Sony could afford another cut before Christmas, whilst Microsoft could.
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