MS isn't strictly concerned with North America. They're concerned with being World Wide. They've said it themselves. I doubt MS won't react to PS3's cut if they want to outsell the PS3 enough to counter it's current lead for the year.

Well, at least if they still want to be number #1 WW.

I believe that the analyst isnt taking into account the consumer sentiment that "hey, Nintendo lowered prices and Sony lowered prices so Microsoft has to as well or I am not buying."

North America, not the world. It definitely seems like they're trying to downplay it. Saying that it's barely outselling the 360 in Europe when, correct me if I'm wrong, it's consistently about the same if not more than the gap the 360 outsells PS3 in NA. That's not even mentioning Japan.

Funny, but I couldn't find where in this article, the author or the op, suggested that America = the world.

On topic, I would be surprised if Microsoft reacted tomorrow, but would expect them to respond in the short term, if the momentum starts to shift.

Personally I think Microsoft would like to wait for a price drop (and competitive bundle pricing) closer to the holiday season. But I could be wrong.

I think MS would reduce price sooner rather than later. Still gives the the ability to release a holiday bundle.

Its quite funny that PS3 has been struggling in NA but only slightly outperforming in europe. In reality the difference between both console in both market isnt that much. Using slightly or struggling doesnt really matter, but be consequent please.

"It is no secret that the PlayStation 3 has been struggling for some time against the Microsoft Xbox 360 in North America (but slightly outperforming in Europe)"

360 is gonna get slaughtered in europe.

Agreed, but then if he mean only europe and not EMEAA its even more ridiculous to bring that in the discussion. You know what, PS3 is struggling in North America (but slightly outperforming in Paris, France). lol

even if MS doesn't drop price they'll do fine. the thing is that Sony always does good during Sept. and October its the last 2 months that claims Sony/PS3 as there bitch.