But it's 2 million from it's biggest gap over the PS3. 

It's pretty effin huge that in 41 weeks, PS3 pulled itself 2 million units out of the hole, and looks to continue to do so.

Yeah, that means they outsold it at a rate of 48780.5 consoles worldwide per week.  At that rate, it will take it another 112.75 weeks to pass the 360.  It will most likely do it, but these price cuts will keep it from getting there any faster than that.

Again.

That argument would hold true if you lived in a perfect world where sales of consoles never increased or decrased.

It'll be much shorter than 112.75 weeks.

As you said, it is not a perfect world, console sales increase or decrease.  Perhaps 360 will now increase.

so now that ms have used what could possibly be their last price cut, what happens if sony drops price during the holiday? if this price drop doesn't boost enough, then the 360 is in real trouble. it's going to be the cheapest console in 2 major markets. sales SHOULD be higher at these prices.

That might be something M$ wants.  Sony to bleed itself dry in an attempt to stave off their rush.

truthfully i don't think the arcade will sell that well.
everybody knows that u need a hard drive for x box live or just buy the premium console

i think it's pretty naive to think that sony will follow suit so easily. ms let an advantage slip, now they have to be selling the 360 below the wii in order to compete with a console twice it's price. unless sales from the cheaper 360 are phenomenal. sony aren't batting an eyelid. the 360 is already at a very good price point. if people aren't buying it now then i doubt the price drop will have much effect.

They are up year over year.  If they aren't buying it now, then they never were.  In which case Sony must have been doing really bad to still be behind them.

I dont think so I think they want a sku less than the WII.