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Ali I'm assuming Microsoft drops all the Xbox 360 skus by $50-$100 and that for people looking for a cheap machine with similar games to PS3 it will be the best option at ~$225-$375 or something.

I don't see Sony dropping by more than $50 this year, so that favors Microsoft in the Americas where it is strongest. PS3 at $400/$500 vs. 360 at $280-$450 is less weighted toward 360 than PS3 at $350/$450 vs. 360 at $225-$375, but since I expect the latter to occur after it becomes evident that GTA helped PS3 more than 360, I think Microsoft will react strongly to continue selling a bunch of 360s. 

 



People are difficult to govern because they have too much knowledge.

When there are more laws, there are more criminals.

- Lao Tzu