All it takes is a price cut say match premium 20gb hdd xbox 360 with the price of the Wii and the XBox 360 will be back in business. The XBox 360 supported by MS can afford to make a larger loss on hardware if it means generating more software sales that would offset the loss and generate large profits.

the attach rate with the 360 is around 7, which is lower then it should be ( so many great games for it ) whats the attach rate for the ps3 2.9?

 In my house the 360 has 3 games, while I have 5 for the PS3.  Heck, the first 2 months I had the PS3 I just played demo's on it. :)

no responded to my list :(

Once Xbox has a real price cut, things will change again. The 360 never really had a serious price cut.

at this point Sony can match just about any price cut from MS. I believe Sony is turning a profit on all the PS3 sold today

 I doubt they are making a profit, theymight be breaking even on the 40gb.

I think sony would be willing to match a price cut to counter microsoft at this point. Its doing to well to blow it by not dropping the price.

The window for an effective Microsoft price cut closed this January, thanks partly to the final triumph of BluRay, but mostly because of Sony's very aggressive cost-cutting on the PS3. The $399/399EUR model is a marvel of applied engineering -- they reduced the power consumption, consolidated the motherboard and heat sink, etc. Thanks to the strength of the euro, Sony is already breaking even on their PS3 hardware, and could absorb a $50 price cut without breaking a sweat.

It seems to me that in Europe they should have been turning a profit a long time ago considering how many US dollars that the Euro price equates to.