I think this will be a very interesting holiday, if Sony does end up with a cheaper bundle/price cut. Every console owner has something big to look forward to anyway.

Posting here so I can read after work.

Is it? Move is more competing with the Wii. It's $349 with Playstation stuff vs $199 with Nintendo stuff. Kinect is completely different and therefore competes against the Wii in a different way. The only reason why they are being compared is because the Xbox 360 and PS3 have traditionally competed over the same markets. However this is not the case with Move and Kinect as they are entirely different design philosophies and share more in common with the Wii than each other in terms of how the interface is implemented.

Don't expect a price drop any time soon.Sony just now making money off it.

Uh yeah, but the new 360 bundle is taking away from the PS3 sales and if Sony doesn't reduce price even by $50 again, then the 360 will really be winning in courting developers, industry support within a matter of months.   Also, sony has the PSN-plus thing adding to its revenue so that should help with profitability as well and could be enough to keep the PS3 from going to far into the red to really hurt them. I see what you are saying and I really think that you could make just as strong a case for either side of the argument. 

activisions threat of going 360 exclusive (even though i don't care to much for them) is a reality once again. i'm not sure if different colors and larger hard-drives are good selling points.

$399.99 for PS3 is a step back unless they plan on reducing the price by $200.00 next yr.

Yes it is. 360 and PS3 are direct competitors in this game. But they are also both looking to attract some of the potential Wii market their way. A $349 bundle is a bit more attractive to the person who was thinking about Wii but could be convinced to go HD than a $399 bundle. But $349 is also there to get the person who was considering Arcade Kinect to have a 2nd thought. $399 bundle isn't going to give the Arcade Kinect buyer an moment of pause.

It's a veritable menage-a-trois now.

Both the Xbox 360 and PS3 are direct competitors but both Move and Kinect have been positioned in completely different areas of the market. Im sure there will be some convergence as Move becomes more mainstream and Kinect develops more of a core gamer library however in the context of holiday sales for this year theres no real competition between the two devices. I don't think given the library differences there will be many people cross shopping Kinct 360s directly against Move PS3s no matter what the price difference is. The person who wants Kinect at this point is different to the person who wants Move and the big question is which one suits best, not which one has the best price relative to the other.

The 360 is absolutely dominating the PS3 right now, if the rumors are correct that Sony is working on a cheaper bundle, then I think that it is a wise move for them

Shoot since my ps3 is crapped out I might as well buy a move bundle. Selling my wii today and the upgrade will be great, you know motion controls in HD.