http://en.wikipedia.org/wiki/Dumping_%28pricing_policy%29

Have I got this right? Since the PS3 is currently being sold below it's cost of production if Sony were to sell it at a lower price than the equivalent model of the 360 (and as long as the 360 is being sold above production costs) Microsoft could file an antidumping petition since it could be deemed as a threat to the industry of the importing country (ie the USA).

I am guessing the laws are alot more complicated than this though. 

There are alot of stupid laws, but nothing would happen if they sold it for any price, the judge would throw it out.

Haha wow thats crazy

After the launch of the Dreamcast but before the launch of the PS2, somebody at Sega stated that if Sony released their new console for $299, Sega would sue them for price dumping.

We all know how that turned out.

So you guys think that this law would never be enforced?

I dont played out

Well do you think PS3 will ever be below 360 in price?

MS has done this many times so appealing about dumping could have worse consequenses for them than Sony. So accusing Sony for something they have done repeatedly wouldn't be very wise. Actually Nintendo could accuse both Sony and MS for dumping but they haven't done it so far...

I was actually thinking about the rumoured xbox ultimate. Given the price of the elite the "ultimate" would probably be more expensive than the 80GB PS3 and they are about equal in features.

 There's nothing stupid about competition laws.

  Like so many other laws, this one doesn't often get applied if nobody calls people out over it. Loss-leading has become standard practice in several sectors, and I don't like it, but for now competitors have played the game. I don't think you'll see lawsuits until somebody starts trying to sell for 50% of cost or something equally ridiculous.

In the specific case of MS vs. Sony, this would never happen. MS has deeper pockets than Sony, and the bigger bank account always wins a dumping war.