I think if Microsoft knocked $100 off every 360 sku they would be much better off. But they will probably continue to play it cheap.

if ms knoced off 100 bucks off of every sku that would Phail.

that would mean a 199 arcade a 250 premium and a 349 elite.

no1 buys the elite anyways

the premium sales are delicing

arcade no1 buys

they wouldnt make any money from that at all.

No, the 360 isn't in trouble. They should be a little more aggressive though. However, I think people need to realize that, with the user base being as big as it is, considerably (and consistently) higher sales this year, the success publishers have seen with going multi-platform, any increase by either the 360 or PS3 is good for both. Lets face it, outside the 1st parties and a half-dozen exclusives, both systems are getting the same games. Taken as a whole, it would be disastrous for HD gaming for one system to "die".

QFT!

Erm, unless Christmas gets rescheduled to June this year, PS3 is not going to catch up to PS2. That big spike you see there is the PS2's first full Christmas season.

The only reason PS3 is still on par with PS2 is because of timing:

Firstly, the PS3 kept on par with PS2 because the PS2 had only been released in Japan, whereas the PS3 had been released in Japan + America. The PS3 then released in Europe and took the lead, barely, over the PS2 which was at the time only released in one region. That spike around week  38 was I believe the NA release of the PS2, where finally the PS2 was selling in more than one region. As you can see, the PS2 clearly outsold the PS3. I believe Christmas was around that point as well, but PS2 was heavily supply constrained (similar to the PS3's first Chrstmas)

Then of course, the PS3 had it's second Christmas around week 53, easily outselling the PS2 which was around March at that point. After that it's selling the same pace in its second year as the PS2 was selling in its first year (consoles traditionally sell faster in their second year), and of course will soon be blown away as the PS2 hits its first real Christmas with full availability.

If you try to use this graph as some sort of evidence that the PS3 is tracking along with the PS2, you're sadly mistaken. The PS2 will only get further and further out of reach.

 You make a good point on the Windows OS in every Sony office. That's true. But Windows has it's own share of competitors. Apple, for instance. And Apple, is another big BD association member.

 I know the BD association contains 18 members, but their shares are not all equall. Sony, Apple and Matsushita are by far the biggest players. So they make the most of the royalties.

See, that's their whole strategy. They installed a format, just like Windows OS has been a leading format. Microsoft will HAVE to use blu-ray in it's next console. Because people won't buy an expencive piece of hardware if it doens't play their movies also.

 I'm not saying MS is dead, but they have a verry serious situation on their hands. They never expected Sony to be this smart, and it will cost them a lot of money, much more than they envisioned, to become a profittable player in the console gaming market.

 They question is: if Xbox 360 can fill up their 6 billion gap, and they can start their next console with a clean slate, will shareholders say: "yeah, go for it" or "no, don't, because my money hasn't made one cent over the last 7 years"

You must realize that if shareholders put their money in other stock, they would have made 35% by the time MS starts roling out the Xbox 720.  And don' guys don't care for us consumers, or the fact that we have good games or not.They only want their money to grow. And if it doesn't, they take it elsewhere.