Won't happen as Microsoft will make sure 360 is always cheaper than PS3, and even if it did, the 3rd Xbox would be coming out right after Q3 2010.

At this rate, never.

Seriously.  I can't believe it's up for debate anymore.  To quote myself earlier:

"I think the more challenging question is - starting 1/1/09 will the PS3 outsell the 360 until the end of this gen?"

PS3 will never surpass 360s sales.. Sony will fall further and further behind.

Yah prolly late 2010 after M$ launches their next console

Some people take longer than others to leave the denial stage and enter the acceptance stage.

PS3 will never surpass 360 in USA, WW it still has chances if Sony doesn't wait too long to drop prices.

Anyway, given the greater acceptance earned by 360 here in EU, Sony won't be able anymore to impose inflated prices, this time, still having room for price cuts and some remaining name to spend, it will be able to limit damages and maybe eventually end 2nd WW (but 3rd in USA) by a small margin, but from PS4 on Sony consoles will better be competitively priced everywhere.

@Zombi337:

what happened showed us that simply being priced less wasn't enough for XB360, it needed to cost half PS3's price to surpass it again, so, once PS3 will be under $300 there will be still little room for 360 to play the price cut card, once PS3 will cut price further, the room to cut XB360 price without losing a lot of money will be over, MS would need years of components costs reduction and far more than 50 million consoles sold to be able to sell it under $120 without losing money (losing money to launch a console is the way things go normally, Nintendo excepted, but keeping on losing money on HW for the rest of console's life isn't good, PS2, for example, has been profitable for a large part of its life now, since before turning three, IIRC). And let's not forget that Sony was severely hit by Nintendo and MS just when it was overconfident, nuff said.