This. If sony dropped the price $100-$150 in eary 2009 though, PS3 would outsell 360 easily. Alas, Sony is not in a position to do so. I expect a $50 drop fall 09.

I highly doubt that any price cut be it fifty or a hundred dollars would grant Sony a position reversal. The reality is stark, and the competition in the upcoming year will be far more fierce. We have to be realistic this year was not the best year from either Microsoft or Nintendo. Both had production difficulties, both had lineup issues. Basically they both spent themselves relatively dry in the previous year.

Sony took supreme advantage of this. They were able to meet demand, and they played their lineup superbly up until the final few months of this year. They performed a perfect chain. As soon as one game faded another joined in. Which helped to buoy demand. Sony will however not enjoy this advantage next year. Which is the critical advantage that can counter a price point that is still going to be higher then the competition.

Both Microsoft and Nintendo will be fully reloaded next year. Nintendo will begin to deliver on the core gaming front where they floundered this year for sure. Microsoft will definitely be delivering from both its first and second party studios. Thus far it looks like a three fold increase. So Sony will not be so shiny next year. They are going to actually have competition in the spot light, and ironically it looks as if Sony spent itself this year. So much of the hype lineup gone.

A lot of posters in this thread are expecting Sony to carry over last years advantages into this upcoming year. Well to be blunt I do not see that happening. Your not going to be seeing three month or four month gaps out of the competition. They are going to deliver far more consistently, and it is a real question as to whether Sony can even manage to match up. It is one thing to face off Metal Gear Solid against Alaskan Storm. It is another thing to match up your premier franchise against the competitions main franchise.

How will Sony fair against a new Zelda, Halo, Starfox, Mass Effect, Blue Dragon, Pilotwings, and so on and so forth. I think everyone saying Sony did fantastic this year in spite of the price forgot why it did better in spite of the price, and the answer has to be delivery and lineup. Thanks to all those delays the console was having a feast in the midst of famine. I do not see next year being even remotely comparable to this year.

No, the 360 won't outsell the PS3. However, Sony will be bleeding financially and MS will sit back, let the lead hit 4 million and drop the price again - and the 360 will outsell the PS3 again. They are making a small profit off of the 360 - and can afford to do it. Sony has some tough choices to make - and can't push reset to do it over again.

I think a 50 dollar price drop would be almost useless. They should either drop the price by 100 or not drop it at all.

If Sony drops the price by 100 and MS does nothing, then yes it will outsell the 360.

At some point the snow starts to stick. The question is, exactly when that point will be, and if Sony will put some salt down before that happens. They certainly are cutting it a little close for comfort.

The PS3 price cut would close the gap but XBox 360 without price cut, being at mass market price would continue to outsell PS3. XBox 360 price cut a month after PS3 price cut would see XBox 360 hammer PS3 once again in weekly console sales.

i reckon ps3 will outsell 360 with good price cuts, console sales are based more off price than game these days.

i dont see ps3 catching 360 in 2009, although it could close gap..........but thats just artifitial i just want the games.

It's not only Sony that's cutting jobs, MS is too.

How much (if any) of that is due to MS dropping 360 hardware price? guess we'll never know.

Luckily for Sony they didn't drop their PS3 price right before a recession and currency woes, and are still selling a fair amount of consoles.

Yeah,  but everyone make the assumption that a Sony price drop would cause them to catch MS, but no one seems to factor in the fact that MS will also do another price drop to counter it.

MS is not going to just roll over and let Sony catchup.

And actually, as soon as MS is able to drop the consoles lower again, they drop the price again even if Sony doesn't do it... they'll react to Sony if they have to, but they don't need Sony to drop their price for further 360 price cuts.  I think MS wants to go jugular in 2009 and take advantage of Sony's precarious situation.  They don't come everyday you know...

The problem is the PS3 is 2 price drops (at least) away from matching the lowest 360 price, and the odds are MS will counter any price cut with one of their own (either cutting price, or adding value).

The industry has long considered $199 the "sweet spot" when it comes to price, which is likely one of the reasons the 360 has benefitted more from this cut than the last one. I don't see any way for the PS3 to reach that point before 2010.