I get so sick of the people on message boards saying people will not pay more than 300 for a gaming system. That may be true for a GAMEING system, but for a Home Entertainment System yes they will. The problem is right now a lot of people only see these systems as game systems. Once people know they can download movies, music, and TV to this system, and they can watch HD movies on the 360 and PS3 or they can browse the web, and join an online comunity much larger than my space then 500 looks like a joke. Once people know what the real next gen systems can do they are in shock that they can do all of that at only 400 to 500 dollars. On the market right now the 360 is the best deal, it has features in it that people pay thousands of dollars to get 7 machines to do the same things that one box does and in most cases better than the dedicated box. I have believe that Sony has a better service lined up down the road which is why I support them.

If Sony do in fact reduce the price of the PS3 again before Xmas, then they could have a bumper Xmas this year. If the 60Gb is sold out and the 80Gb takes its place and then is reduced to say $449 or even $399 then it will do very well in NA.

I reckon it's very likely that we will see a pricedrop in Europe as well before the end of the year. A £299 PS3 in the UK and a £349 PS3 Starter Pack will be the way to go.

Sony is toast this Xmas. Ninty will take #1 / #2 spots, and at best the PSP could challenge the Wii in patches.

The 360 *will* get a price cut (closer to the time that actually matters), and will almost certainly outsell the PS3 worldwide over the holidays. 

The PS2 will continue to be pretty strong - and may well outsell both the 360/PS3 (but probably won't outsell the Wii - unless there are serious supply issues).

The GBA will probably continue to outsell the PS3 - but only in the US (last Xmas for it). 

The problem with your reasoning is that many people, including myself, only want the gaming machine portion of the unit. I don't want to pay $100-200 more for stuff I won't use.

My Prediction for the second half of 2007 is like this....

DS > Wii > PSP > PS2 > XBox 360 > PS3

But because of virtually no sales of 360 in Japan and lower sales in Europe compared to PS3, those two last places can switch and things could look like...

DS > Wii > PSP > PS2 > PS3 > XBox 360

My Sales prediction is more lukewarm though,

PSP will increase its sales and though it will still sell less than DS, the ratio will be bigger than 1 to 2, but rather like 2 to 3.

Wii - 14-16m
360 - 11-12m
PS3 - 5.5-7m

I am an economist major, so safety intervals are inevitable with me :)

I predict the PS2 will outsell the PS3 this Christmas.

You gotta love the title defending champ when it took 3rd place last holiday season.

 You gotta love reading comprehension and it says Sony not PS3.

 I thought he meant last place champ! I think they may have that title locked again this year. We'll see...

Didn't the DS, Wii, GBA, and GC out sell the PS2, PSP, and PS3 last holiday season?