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TheSource said:

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. 

 


 But if we have to believe the news, Sony has been much more aggressive in implementing cost cutting for PS3 than MS is for XBOX 360. 

So i m not sure Sony will sit still if XBOX is available for $225.. and from the actions and statements of Sony it look to me they have alreay decide one more price drop for PS3 before the end of this yr whether MS do it or not..