Let's face it, fifth and sixth console generations have been boring since Sony consoles absolutely dominated the market. It was simply the console to own: if you have a Playstation, you don't need to have anything else.

On the fifth generation, Sony released their console very early - almost two years before Nintendo came with the N64. Gaining massive third party support, the cartridge-based N64 was no match for Sony's Playstation, despite being nearly two times more powerful. There was the Saturn also... but well, you know...

Again on sixth generation Sony released their console before their main competitors, Nintendo and Microsoft. Sega was absolutely crushed by the PS2's launch, and forced to retire. The Gamecube suffered with its "kiddy appeal" and Microsoft was still too early on the game to stand any challenge to PS2 domination.

Things, however, suddenly changed on the seventh generation. This time, Microsoft released their console earlier. The X360 came with many innovations (gamerscore, live arcade) besides a very good library at launch. "The first one to reach 10 millions wins" believed Microsoft back there. Considering the ever-increasing X360 library, it seemed MS was right.

But then came the Wii. Nintendo, standing against gloomy predictions, managed to take back the crown and not only manage to have the fastest-selling console ever but arguably also the biggest cash cow gaming market has ever seen, besides perhaps MMORPGs.

Finally the PS3, one of the most expensive consoles to launch since the early 90's, was released worldwide at a staggering price tag of 500-600 bucks. Facing a first year of absolutely no games, the console seemed doomed to an early and tragic death.

Than 2008 came. With a $100 pricecut, PS3 managed to consistently outsell X360 until the beginning of the economic crisis and the $200 Arcade SKU. In a matter of months, PS3 also got an amazing library of games: MGS4, LBP, Resistance 2, Valkyria Chronicles joined Uncharted, Heavenly Sword and Ninja Gaiden Sigma as must-haves for any gamer.

Priced at 400-500 bucks more than two years from launch, it is easy admit PS3 isn't selling too hot right now compared to its eternal rival, the X360. However, the tides can turn yet again later this year and give PS3 the advantage it needs to deserve its brand name:

The 45nm revision shall make the PS3 far cheaper to produce, managing to break even by a fair margin. Keeping the current price until just before the holidays, the console will bring profit perhaps for the first time. Then, a $100 pricecut just before the holidays will assure PS3 its best-selling year despite the slow start.

Not only the pricecut, but many of PS3 blockbuster titles are slated to relase this holidays or on the following months: Gran Turismo 5, Final Fantasy Versus XIII, God of War 3, Uncharted 2: Among Thieves, Heavy Rain, Infamous, The Agency and Trico. Gran Turismo 5 and Versus XIII shall be huge and bring a massive sales boost on Europe and Japan, respectively.

On the other hand, things have started to become rather delicate for the X360. Already selling at a mainstream pricetag, the console has far less titles on the upcoming holiday than the PS3: Lost Planet 2 (probably a timed exclusive) and... um, sorry I forgot. Of course there are upcoming titles like Gears 3, Forza 3 and perhaps Halo 4 but these are not even announced yet.

The X360 is already tracking below PS3 on an ever-increasing gap altough the one-year advantage keep MS with a tranquil advantage. But if things start to get bad for X360, could MS manage to turn the tides yet again once PS3 start outselling the X360 again? I don't think so. At this pont, even a Wii pricecut would cut deep into the Arcade SKU sales. Nintendo can, while MS cannot afford to lower the price forever. Or does MS investors want the X360 brand to forever be a cash eater?

Can X360 keep ahead of PS3 until the beginning of the eight gen? So far, is a definite possibility. Or maybe PS3's raisning appeal can close the gap?

http://www.vgchartz.com/hwcomps.php?cons1=Wii&reg1=All&cons2=PS3&reg2=All&cons3=X360&reg3=All&start=39082&end=39873&weekly=1

Through 2008 the PS3 gained on 360 but it was Happy Christmas 360 and the gap increased.

PS3 needs a substantial price cut to compete and the current financial climate does not look good for them. Having said that most 360's are cheaper than a Wii and that's not giving the Wii and problems!! 360 Elite is under £200 now!

Some of the PS3 titles will help shift consoles, but not enough this year.

Depends what the next gen of consoles offer features and at what price. Too many unknowns!

The 360 is already tracking below PS3?  The PS3 only managed to beat the 360 for one week because it had two big games released (one in Japan and the other in the West).  It's like saying the PS3 is in trouble in Japan because the 360 managed to outsell it during the release of a big game.

Also why can't MS afford to cut the price of the 360?  It's an interesting comment especially since you think Sony is in a financial position to make a $100 price cut on the PS3 before the holidays.  Have you looked at the current financial situation each company is in?

As for your comment of a Wii price cut cutting deep into X360 sales, if that's the case what affect do you think it will have on future PS3 sales, especially when it'll likely take 2-3 years to reach the same price point?  Since the majority of casual buyers don't purchase multiple consoles wouldn't it look especially grim for that system?

You do realise that last year despite being beaten for almost all of it, the 360 STILL had its biggest selling year

You do realise that the 360 is yet to reach mainstream price fully? The Arcade now may be $200, but the Pro isnt there quite yet. The original XBOX sold the VAST, and i mean the VAST majority of its units at that price point, MS on the other hand has just reached it.

As for exclusives, MS havent announced everything, but lets face it, with the quality multiplats and a big exclusive, MS dont really need much more. Also, the Valhalla chip is going to reduce costs dramatically and importantly it could lead to a slim console.

A cash strapped population would love a cheap slim console

And more, MS isn't loosing more money with the 200$ than when it was 300$, i believe they just repassed the price cut of production to the final price. If Valhalla is really going to be realesed they cut the price again and even sell the console with profit. And Ms isn't loosing money with 360 at all, the software sales and the xbox live wth all those features pay the looses of the system and make profit.

Yeah they are even making profit off every Arcade sold, still though, i think the Slim console will come a while after Valhalla, i think that with the Valhalla chip, MS will want to for as long as possible rake in the bigger returns. When the slim does come about, theyll only drop the price a little bit as the new look will be enough to spur sales a la PS2 Slim