I think if MS went with completely free Live Service, and did a price cut of $50 it would go along way in the current market. While it may seem that price cuts don't help consoles, you couldn't be further from correct on the matter. Many consumers will simply not spend the money for a console, won't even look at it if the price is too high. "Perceived Value" for entertainment is different for different people and different classes of people. A lower income family may not be willing to spend $300 for a video game system and then $60 a game there after. However, if a system is $250 and games range in price from $30 to $50-$60 there is a better perceived value to the investment of a home console.

@HappySqurriel,

i JUST want to see the answers to my questions, THAT IS ALL. :)

Well I can't answer the question because at this time last year all of the big budget PS3 games that "will" be released in 2008 were going to be released in 2007; it is very likely that several of these games could see further delays which would push their release back (at least in some regions) until 2008. Beyond that there were several big exclusive games released in 2007 which were highly hyped as the savior of the PS3 and only after they were poorly reviewed (or sold poorly) did people stop seeing them as being so valueable.

I will HELP you a little. =)

CrazzyMan, it is still a matter of definition ... Ridge Racer, Everybody's Golf, Ratchet and Clank, NBA 07/08, MLB 07: The Show, Time Crisis, Unreal Tournament and Gundam Musou were all large brands which were exclusively (on some level) released for the PS3 in 2007. In 2008 there are more announced exclusive big brand games, but there is little saying they will remain exclusive or that they will even sell well.

I would say that the PS3 will edge the 360 in 2009/2010. Sony is unleashing their big guns this year and it could convince people to purchase a PS3 this year. The library isn't that great like the 360 or the Wii, but it does have a library: Something that couldn't be said a year ago. Although, there is that GTAIV factor, and I'm really curious what will happen. I think software sales will be better on the 360, but what I would like to know is which console will have a significant hardware boost from it. Also, who will feel froggy first with another price cut, Microsoft or Sony?

Hahaha, that's CrazzyMan! "MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3,MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3, MGS4, KZ2, R2, LBP, GT5, T6, FFXIII, WKS, GoW3"

@ Cazzzzzyyyman.

1. no not at all, just like Halo 3 the ps3 will see a boost in sales when and if those title launch, the size depending on other market factors like competing titles etc. THe equation is not 1+1+1+1 =4 it would be far more complex as some people like more than one game on the list.

2. Can you clarify the question a little?

3. Complex question. I would say as much as halo3 but no more to as little as 50K increase. but it is quite complex.

My only comment is about the ps2 numbers, there are alot of things which are different now, which would be and not limited to

1. MS has been accepted as a long term player
2. MS lauched a year earlier
3. MS has a larger install base
4. HD content cost much more $$ to make
5. MS has a lower cost to manufacture
6. Developers are lazy and tend to take the easy option
7. Nintendo has shaken the apple cart
8. Far less exclusives
9. Sony needs to return a profit
10. MS is a formidable opponent and sony knows it
11. MS is really good with software
12. MS has a very strong lineup (otherwise they would be idiots)
13. ....

 The PS2 was released in 2000 so if 2008 is the PS3's 2nd year that makes 2001 PS2's 1st year.

So you are saying that the PS3 in its second year is outselling the PS2 in its first year when it was supply constrained and hope to gain valid conclusion from that? 

The reason the PS2 sold so much that year despite that poor start was because it had that poor start due to supply constraint and the demand was higher than that so that when these constraints were removed the sales increased to where demand really was. The games that came out that year helped t osustain and increase that demand but it was there to start with.

The reason the PS3 won't sell as much in 08 as the PS2 in 01 is because while they start similarly, the PS3 is not supply constrained so that is an accurate representation of the current demand and the games comign out this year will act as multipliers for that demand whereas the games in the same series acted as multipliers to a higher initial demand on the PS2.

 Also, because some of those games (DM4 but especially GTA4) are multiplatform with the PS3 it means that the multiplier will be smaller than it was last gen so you get a smaller multiplier for those games applied to a smaller demand. Another multiplier that will either not happen or be smaller on the PS3 is the PS2 price cut to $200. While hte PS3 might have another price cut this year it would most likely be to $300 and would thus have less effect than the PS2 cut to $200 as $300 still isn't a mass market price.

So you start with a console having a smaller initial demand than the PS2, apply to that demand smaller multipliers due to non-exclusivity/lackluster-price-drop and you expect it to sell as well as the PS2?

I guess ___O_o______ was right about you getting flamed, but you sure as hell asked for it:

For a more valid comparison here is the PS2 in early 2002, its second full year, against the PS3 in beginning 2008, its second full year: 

 PS3 2008 (2nd year) - PS2 2002(2nd year)
06th January 08 <> 06th January 02
Total - 275k <> Total - 598k
Others - 138k <> Total Others - 146k
Japan - 68k <> Japan - 346k

13th January 08 <> 13th January 02
Total - 146 <> Total - 320k
Others - 62k <> Total Others - 103k
Japan - 34k <> Japan - 126k

All of a sudden, when you use valid comparisons things don't look so good for the PS3.