Package up Little Big Planet.

why the Ps3 Headset's way better (non biased opinion) its a BT plus way more features I really wanna kno whats your opinion?

i would market the the hell out of the thing

What are you talking about?  Both the 360 and PS3 have a 1 year warranty on the system and a 90 day warranty on accessories.  The 360 also offers a 3 year warranty on general hardware failures (RROD). 

Also in Microsoft's favor is that they pay shipping costs both ways and will extend your warranty if your system is repaired and has less than 90 days left on it's original warranty.

sources:

http://www.xbox.com/en-US/support/systemsetup/xbox360/resources/warranty.htm
http://www.us.playstation.com/Support/Warranties/PS3
http://www.xbox.com/en-US/support/systemsetup/xbox360/resources/postservicewarranty.htm

for the 80 GB put in a $500 gift card to walmart

And for everyone that buys a 160GB they get a free PSP 3000

Hell why not make it a $1000 wal mart gift card. Walmart can still afford it.

Have this girl hold the box up in a store and I'm pretty sure lots of people would take it out of her hands.

so you would destroy their profit margins, on multiple items, to try and keep 360 in check... i think they were after profit until next physical year, and this would stop that.

now for that being said i have no doubt that limited run pack ins for diffrent triple a games will happen

I am also of the opinion, that sony and ms need to pack in a fun game for their systems all of them, nintendo has made that a good barganing platform and i feel the wii though being more expesive than the core, gets a better value rating because of the cores packins being xbl games and not real ones.

 Scratch all that. It's as simple as this:  $99 PS2  , and $129 PS2 bundled with 2 greatest hit games and memory card.

Game over MS and thanks for playing the "price war".