I still don't think there done for. Hell i wish that the "next gen" didn't even start for another 2+ years.

When i think about the next gen all i think of is longer development games, higher game prices. Who isn't happy with games and visuals now.

...Side note does anybody know if there gonna release the gun metal gray Ps3 is aus? or in the world?

i doubt anyone around here owns a business. if we did, you think we'd be browsing on vgchartz all day?

Pach is right on the money on this one. Aside from the sweet Black Friday bundles for each system, neither the PS3 nor the 360 saw any price cuts in hardware this year, which is why their overall year-on-year sales actually dropped a bit.

Traditionally videogame consoles have hit market saturation once they reach the $99 price point for regular MSRPs. Wii will obviously be hitting this price point sometime this year, and the PS360 will each be getting permanent $50 price cuts at some point (probably around E3), which would make them as low as $149 and $199. This will be the final big year for both consoles, and then next year they'll probably reach market saturation as the next gen systems get closer to launch.

I do, and I'm sure lots of people here do. Small business are also business.

PS3 had a 50 $/€ price cut this year.

Im not so sure another price cut will make much of a difference in the US for the ps3. If im not mistaken, a standalone ps3 costs US consumers $249, although most would prefer to buy a bundle of some sort, which costs $299 plus. The price is pretty high even in the US, but its not an insane price, if people wanted a ps3 they would have bought one by now. Another price cut would spur sales on but it would not have a drastic effect on sales. The 360 is the console of choice in the US by quite a margin, irrespective of price. Given that the 360 is cheaper than the ps3 and has much better bundles, this is another point against the ps3. Also the Wii U is coming and the gen as a whole is slowing down.

In europe and in most other parts of the world, the price of the ps3 remains to be a big stumbling block. I remember a similar point in the ps2's lifetime..almost everybody had a ps2, almost all of my friends had one. I look at the situation now and im a rare one out of my friends who has a next gen (current gen) console, let alone a ps3 and we are 5 - 6 years into the gen. I would say the ps3 is two price cuts away from being truly affordable by the masses. The reason why i say two and not one, is because one pricecut we will see an affordable standalone ps3 but another would give an affordable bundle. And a standalone unit is not an attractive buy at all.

This is how sony lost most of its marketshare to 360, and to an extent the wii, but mostly the 360 which has an affordable base price for the standalone unit and great bundles worldwide. It has been this way from the beginning of the gen. Its actually quite amazing by how much ps3 outsells xbox in places like africa, middle east, and asia, where people have less money to spend on such things.

Just for some background knowledge and where my experiences are coming from, i live in South Africa, and as far as i know we get out prices straight from Europe...and it seems as though we have similar buying trends and preferences.

I agree, I think there is still an "official" worldwide big price drop coming for the 360 this year which will help them probably be up YoY this year, letting the console "naturally die" just before the 720 arrives next year.

And for the PS3 and think there will be a redesign of the machine coming, allowing Sony to reduce the price while maintaining profitability for the next 2 years and probably keep going up, before the PS4 arrives late 2013 in Japan early-mid 2014 Worldwide.

Both of these machines still have tricks up their sleeves besides price, though price will be important.

You're right, I stand corrected.  I keep thinking the $50 price cut happened last holiday season instead of this year because that's when the 360 core/arcade model dropped to $199.  Seems like it was that long ago anyway.

360 arcade model dropped to $199 in September 2008, four holiday seasons ago.

I see both the 360 and PS3 selling strongly even into 2014. The price cuts are inevitable and with development only getting cheaper and easier we will see some good games yet on them. Keep in Mind Atlus didn't release Persona 3 and 4 on the PS2 until after the PS3 came out. I expect the same situation with the 360/PS3 after the PS4/720 comes out with a lot of smaller third parties that were too intimidated to make the full leap into this gen.