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MS will ride it out. MGS 4 will move quite a lot of PS3's in US and Europe and reduce the gap between PS3 and 360. MS will just watch and wait before a price cut at start of November.

Gears of War 2 will be out around 23rd November two years after Gears of War was released on the 360. Gears of War 2 will sell a lot of software and move 360's during November and December especially in the US.

US are mad about shooter games: Gears of War, Halo 3, COD 4 and countless other shooters have sold huge numbers in America.

Banjo Kazooie: Nuts and Bolts, Too Human and Fable 2 are  due out in fourth quarter 2008.

Resistance 2 on PS3 will be launched around the same time of Gears of War 2 in November. PS3 also has LBP, Socom:Confrontation, White Knight Story and War Devil coming out in fourth quarter 2008.

Second half of the year especially the fourth quarter of 2008 and will see the best games released on both the PS3 and 360.