CAPCOM's PS3 comment recently;

"We believe that the PS3 has finally reached full swing after looking at the succsess of MGS4, as well as future large-scale lineups. In addition, some reduction in the PS3's price was announced at E3 and we can expect it's spread to increase by March next year when our Resident Evil 5 for PS3 is released."

This was reported from ps3fanboy.com and taken from a Capcom Q1 financial results question & answer conference.

The vibe for the PS3 is very strong going forward and in my opinion, if the 360 launches a new system early again, it will only please the hard-core and piss off every one else!

more important counter points

1) sony lineup will trim the lead by a wider margin every week till jan 1st

2)sony will make up 1-2m in the next 4 months, so at 3-4m lead giveing up 120k means more. in the case of a 3 million lead, then it would only take 60 weeks to put ps3 on top.

3) there is starting to see some real momentum now for ps3. maybe its not justified, but people are jumping on board.

last 5 weeks
week over week
5% increase
5% increase
5% increase
20% increase
10%increase
since july xbox has been losing percentages week over week except for the day the temp cut came out, and this week which was 4% increase

i wonder what they will say, if they finish in third

2nd Place for the 360...... Done deal

And thats the bottom line_________________

not only that but the last three weeks is the least amount of units worldwide that the 360 has sold out of 52 weeks.
these are the lowest three weeks!!!
in the last year ps3 has, on average outsold 360 by 20k a week.
since jan 1st
ps3 has averaged 50k a week more than 360.
in the last 3 months ps3 has outsold 360 by almost 60k a week

To be honest I don't think they can control what happens very much. They will be at the mercy of the consumer and how the Ps3 rolls along in the next months. To me, I think Sony momentum worldwide is beyond Ms's power to stop at this point. They had their chance. Sony will be a solid #2 at the end of the race, that's what I think at least.

Coming from the Senior VP, this clearly wasn't just an off the cuff remark or a slip of the tongue; this statement is a sign of something. Keep in mind that MS has shown time and time again, in most industries it is a big player in that to them market share is king; to admit they can't reach first is very un-MS.

The simpliest, and least ground shaking would be if this is just softening up investors for the real bad news that could be coming when they end up in third. Yet that doesn't sound like MS. MS almost always (in all its business units), make predictions that are absurdly optimistic. For that reason, I feel it must be more than just this.

The next most obvious, as others in this thread have already predicted, is that MS may be giving up on gen 7 and already making plans for gen 8. With all the admiration they have been showing for Wii of late, if this is their plan bet on it being a wii clone (with HD and Live)

But I am going to put my money on the less obvious option (one I have floated before, and been critisized for); MS is openning the door to getting out of the console business after this gen. They will be resigned to second for a little while, then a year or so after PS3 overtakes them they will stop producing 360 and not make a replacement. MS has thrown billions into consoles, and in the process achieved their goal (knocking Sony down far enough that Sony can't own the living room). But what MS hasn't acheived is the kind of domination of the industry that works best with their business philosophy. So I think they will chalk those billions up as money well spent, then get out before it costs them any more.