The whole idea of the 360 being dead stems from the fact that Microsoft has aggresivley cut it's price below that of it's competitors . There are many why a business would cut it's price , i'll give two in relation to Sony & MS.

One reason a business might cut price is to bring a console to an affordable price point that anyone who desired the product but didn't have the means to aquire it could finaly purchase it . Desire for a product is not always 1:1 with the sales of the product e.g 10,000,000 want Ferrari's but only 50,000 people can afford to buy one , this doesn't mean there isn't demand ( or desire) for ferrari in comparison to Ford with 100,00 owners but the cheaper price on ford cars allows for a better desire:sales ratio. This is pretty much Sony's situation

Another reason you might want to cut price is to generated desire that isn't realyl there , the consumer may not feel the product is worth the purchase until it reaches a certain price proint possibly because they prefer similarly priced alternatives or the quality of the product makes the purchaser feel that the investment isn't worth while (RROD) which is the XBOX's situation.

The reason why the PS3 experiences bigger boosts than the 360 is because there is greater demand for the PS3 than there is the 360 ( or desire as I like to call it) despite what actual sales figures might indicate. People call the 360 dead because Microsoft has to effectivley force feed it with price points similar to last generation consoles and handhelds.

Wow a great post and it sounds so logic;..You must be hated by the Sony Defense Force!