that would destroy them financially, and decimate sales in the blueray player market. at best expect a 100 dollar drop sometime from march to late summer, 199 for the ps3 is at least 2 years off

^ It could work, if they shrink the cpu/gpu. Also, it would give them a higher market share. And you're forgetting, it costs $400 to make a ps3 now and it'll shrink a bit next year. So they may only lose like $100 per unit.

sony said it will cost 100 to make a ps3 by january, so no its not there yet.... there are some costs which wont drop that fast, the ram inside the ps3 can not be unified on one chip with the gpu/cpu, the hd cost is fixed, and bluetooth is there too, they could drop wifi and shave more cost off, but the biggest killer is Blueray itself, that will make up most of the cost of the product until well into 2011. cutting edge technology has a price, and generally that price is longer time to reduce costs. 

Not looking too much like it'll be "close". Looks like 360 will easily make up what PS3 did early this year. I will be updating in a few minutes.

But this being 360s peak year, whaddya expect!? That they'd sit down and let PS3 win it? Nah.

Others up:

PS3 YTD- 7, 862, 111

360 YTD- 7, 114, 110

Difference: 748, 001

Always funny to see the Year or the PS3 continue to move up every year. Even as a PS3 owner it's always good stuff. With that said MS will most likely pull a hat trick again next year with good exclusives for year end as they did this year. Personally, between Alan Wake, Halo Wars, GTA IV DLC packs, Ninja Blade, SO4 I'm pretty happy so far and I'm sure they will have plenty more to announce by GDC once again.

PS3 will outsell 360 in mid 2009 sales for others. I don't know if they will do the same WW, especially when the year is almost over.

2007 was the year of the PS3... no wait it wasn't.
2008 will be the year of the PS3... no wait it won't be.
2009 will be the yard of the PS3... third times a charm folks!

This is the year of the Wii! But Sony will finish third this gen :P

At this point, barring Sony doing something drastic, the margin will be closed, and the X360 will win the year. There are still ~6 weeks left to close under 800,000 units.

From this point on, the gap will only widen. I expect the X360 to average no less than +200,000 units on Sony for the rest of the year. For 6 weeks, that'd give it 1,200,000 which would be more than enough to overcome the Playstation 3's lead that it gained throughout most of the year.

Unless Sony can introduce a $299.99 price point for the PS3 next year, it won't win 2009 over the X360.

Considering 360 outsold PS3 by 100,000 last week, and now 100,000 this week in Others alone, and most lilkely 100,000 in Americas......360 has a very good chance in the next 5-6 weeks!