Yes, yes it will.

There is one factor which has managed to elude this debate. Firstly it is not just the price gap that Sony must overcome Sony must overcome the quality gap. Even a pragmatist would concede that Microsoft either through its earlier launch or superior plan has amassed the superior library. The console by far has many more titles, has better genre coverage, more exclusive titles, and has all the requisite multiple platform titles from last generation.

Sony simply must address the disparity. While the prohibitive pricing has been somewhat relieved on the PS3. The library disparity is only going to increase over time not decrease. Yes Sony is doing better then they were. They are not getting shut out as often, and unlike most of the first launch year the console does have a library. However that doesn't change the fact that Microsoft is getting farther ahead. Even eventually to the layperson this is going to become obvious. They are going to easily comprehend that the 360 has more better titles.

I am not sure you can place faith in consumer ignorance or stupidity pushing the PS3 past the 360. By the time the PS3 starts to make the price push again four years into a generation most consumers are either wiser about the products, or are utterly indifferent. The net result is they will buy the cheaper console based upon library, or they will buy the cheaper console due to it being cheap enough for them to play casually.

Either way I want to read an explanation as to how Sony can overcome in challenging economic times on two fronts against Microsoft with its massive war chest. I cannot see Sony being able to bankroll a massive list of exclusives, covering standard costs, and lowering the price on their console to a competitive point. Not with this economic slump, and the PS2 fading away faster, and the company having financial problems. This is a perfect storm hitting Sony. How can they manage to turn everything around.

It's hard to tell. This Xmas and the next might be the only chance sony has to close the gap. Right now Sony has a commanding 1.5m lead for the year. That could all be wiped out this christmas with the advent of two huge 360 games, fable and gears.
Of course 360 has always had a rabid fanbase and those two games are the corest of the core, so, who knows what they will do for the system.

The funny thing is that xbox360, despite the two big price cuts (USA - EUR - JAP) sells less that 2007, instead PS3 without price cuts selling more than 2007.

In conclusion:

If in 2009 there will be a price cut of PS3, in late 2009 PS3 will outsell xbox360 worldwide.

Wrong.  Just.  Wrong.

No matter what charts you use, the ONLY place the PS3 is ahead of 360 is in Japan.  Everywhere else, the 360 is way ahead.

The PS3 will not catch up this generation.  It just simply is not possible.  Instead of lowering the price, they are releasing a new SKU with a HIGHER price.  Not smart.

@indodude

Your numbers are a bit deceiving:

You posted this:

VGChartz Hardware data for the period 06th Jan 2007 to 01st Nov 2008:

Which is just the others for that time period.

While recent numbers and most likely carrying this holiday in others show:

VGChartz Hardware data for the period 27th Sep 2008 to 01st Nov 2008:

If the PS3 drops the price, the 360 will as well.  Even now, on Microsofts poultry $199 console, they are pulling a profit.  The PS3 still takes a moderate loss per console sold, and only made a profit off of the games, but since the software attach rate (tie ratio) of the PS3 is 5.3 while the 360's is 8.1, I think it is clear that Microsoft can easily reduce the price again if needed.  Count in that this generation of the 360 still has many titles, and that FF13 will most likely sell more copies on the 360 than PS3, and what is left for the PS3 to use?  GT5?  HA.  Killzone2?  HA.  Gears of War 2, and eventually Gears of War 3 will both sell more units than Resistance 2 or Killzone 2 by quite a large amount.

 Two things that Sony seems to be in short supply of this generation.

And no, the PS3 will end up in 3rd this generation, but it will be within 2 million by the time it is all said and done.

Lol, no:

VGChartz Hardware data for the period 13th Jan 2007 to 03rd Nov 2007:

I used 13th Jan because that was the first full week in '07 (7 days).

VGChartz Hardware data for the period 12th Jan 2008 to 01st Nov 2008:

The 12th Jan was the first full week of '08 (7 days)

Looks to me like the 360 is outselling itself over the same time frame from last year by around 1.5 million consoles.

Exactly.  They may make up some ground, but never catch up completely.

(A) The X360 will likely not get any more pricecuts anytime soon
(B) The PS3 will be going 45nm next year, most likely -- pricecut impending
(C) Blu-Ray sales are climbing decently, no matter what the naysayers like to believe.

I think that pretty much spells it out. Its not going to happen overnight, but, yes, the PS3 will eventually overtake the X360, very likely well before this generation ends.

The "X720" will be nothing more than a Wii HD clone, mark my words. And I'm going to stand up and say that Nintendo's inevitable release of a 100% BC "Wii HD" (still less powerful than the X360 and PS3, but meaty enough to support 720p gaming) before this generation ends does *not* constitute the start of a new gen.

Blu-Ray sales are climbing yes, as will any new technology, but it is climbing much slower than the DVD did, and is climbing slower than the rate of people switching to digital downloads, HD streaming, and $1 DVD rentals. I think BD has had as much of an impact on the PS3 as it is going to. Especially now that stand alone players are dropping to $250 and under.

The PS3 may be going 45nm, but the 360 is going integrated CPU/GPU chip which will lower it's heat and costs significantly more than the PS3's switch to 45nm for just the Cell.

The 360 may not get any predicted price cuts, but I guarantee that if the PS3 drops the price, so will the 360. Microsoft can afford it, Sony can't.

The X720 will not be a Wii HD clone. What would even make you think that? If it is because you are saying that Microsoft is trying to catch the casual audience, well so is Sony. Ever heard of the mega casual game LBP? We have no idea what the next gen consoles will be, but I think it is safe to say that Microsoft has the best plan for capturing both hardcore AND casual audiences.