Similar reasons too those that make people believe in a "Sony Dominations start in/with ___!" catchphrase

 maybe becasue they are right, GTA for what ever reason has not found to be a huge corss over hit with FPS nuts that dominate the 360 user demographic.

 But vg members learn the hard way, they like to be proven wrong many time over.

 And PS3 had to cut it's price $200 in a year to stay competitive. I'm not saying that the 360 WILL come back (though I will say I'm 90% sure the 2 will switch places a few more times), or that 360 will beat the PS3. But it's almost impossible to predict this kind of stuff. Hell, I wouldn't have predicted that a $400 PS3 would be on the market right now. I thought it would be damn near impossible due to cost. But here we are. If Sony could do a desperate move to get back sales, so can MS. It's far from a done deal. And obviously both are getting absolutely eclipsed by the Wii.

I think a days where the 360 outsells the PS3 ww are over. Soon they will lose the US for good. GTA will widen the gap, not close it. if you are in the market for an HD console, and GTA pushes you to by one, the PS3 has so much more to offer then the 360 at the moment.

For this to not be true, MS will have to either greatly reduce the price of there console, or announce something really big that we don't know about (like Halo 4 :p). I don't see either happening.

MS will know better than anyone how many (or how few) consoles they are shifting in Europe, and they will have something up their sleeve to counter it.

Nope. This is why Sony wins. They are a very good consumer electronics company competing in a consumer electronics market against a software company.

MS has no chance of beating Sony when it comes to reducing manufacturing costs of hardware. They are the new kids on the block when it comes to these kids of things, and Sony wrote the book on it.

It's what they do. 

 No offense, but how can you not see a major price cut? $50 cut since launch in 2005. Even if you hate the 360, you'd have to be blind to not see a fairly significant price cut on the horizon.

I hate that line of reasoning.  The cheapest ps3 is still $130 more expensive than the cheapest 360, yet it still outsells it week to week.

Imagine if the Wii had cost $10,000 on launch day, but then dropped to $250 the very next day.  Then everyone would be going, "yeah, it's in the lead, but it had to have $9,750 worth of price cuts to stay competitive, lulz."

$600 is a bargain when you consider the 3DO launched for $700 and the Neo Geo was $650! lol

OT: I think the 360's prime is past and for all weeks (with the exception of Gears 2, Halo 4, 5, 6, etc) the PS3 will outsell it

They haven't shown what that is for quite a long time of getting beat there...you have a lot of faith in Microsoft.