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you have to understand this is precisely because MS didn't drop the price sooner AND because GTA4 full exclusivity was not secured by them that the PS3 was able to "go out of the wood".


Bah, Sony is a bigger company than Microsoft. Not quite as profitable but considerably bigger. If they had been in the danger of being killed by MS they could have followed any step. Definitely a price cut (besides in Europe the 360 already costs almost half the PS3 and it doesn't help). And for GTA4: There are almost 4 million sold copies on PS3 and there will be quite a few more. Compensating Rockstar for it (and for the hatred of Sony for their future games) would have been enormously expensive. And again Sony could follow any step in this direction. It is in the interest of both companies to get profitable but should one try to obliterate the other with a price cut or whatever they would follow up.