microsoft announced it after there conference..

if the rumors of a new ps3 are true it will hurt the new xbox sales

What new PS3?  You mean the whole "PS4" thing?  People happened to conclude a new PS3 system, because the PS3 has a promo spot that says "PS4 under test"?  As I see it the "PS4" bit is merely the PS3 with new stuff added, like Move and 3D with the glasses.

aww now i think sony is gonna drop its price too....

wow microsoft really dealt a blow here...

If they are phasing out the older models, then once they are gone they would have to decrease the price of the new one to meet the expected entry price of $199.

^ meaning people wanting the new machine should just wait for the holidays.

i hope so but this is good news. i expected as mutch.

This is great for Xbox360.  It'll top PS3 again for little while and can't wait for Natal, i mean Kinect!

http://www.youtube.com/watch?v=wxJ16-8KKfw&feature=player_embedded  

Doesn't look that slimmer.  Not impressed with the design, but added features are cool.

not necessarily. the new model just might be appealing enough to avoid doing that, but point well taken.

yup and they can continue losing massive amounts of money and sadly sony is more interested in making profit rather then winning a fanboy console race. Once they lower the development costs maybe. I think sony learned a valuable lesson selling their ps3s for less then what its costs them to make the actual console.