The PS3 will never (and by never I mean throughout it's life cycle) be able to sell for less than $200 without some major hardware removals.

Their production cost started out at about $800-900 and has since lowered to about half.  But where the 360 will end at around $99 in the last days of its life, the PS3 will end at around $199, always beinga bout twice as expensive.  This is because of the technology included in the PS3 that will never get to the cheap levels of the 360.  When an item drops in price it eventually hits a wall where it can't go any lower.  The more stuff crammed in and the higher the initial price means the higher that wall will be.

Also Slimebeast said it very well regarding the current pricing of the 360 in relation to launch.

A new Xbox in fall 2012 at the earliest with 2013/2014 most likely.

Nov 2012 I perdict X720.

With Natal it looks like this gen will be extended to 7 years, compared to 6 years in last gen (PS2). Also PS3 is minimum 7 years til PS4, if not 8 years.

DON'T BUMP OLD ASS THREADS PLEASE.
I've gotten banned twice for it (although the last time was relevant, so I don't know why I got banned that time)

My guess is no new Xbox console until at least 2012, but far more likely 2013-2014 (or later).

There's no way that Microsoft would be doing something like Project Natal and release is in late 2010 (or later) and have their new system come out less than a year later.

2012, same year as PS4, Wii 2, and EA's new console ;)

we wont see the xbox 720 till at least 2012..
MS is makeing a ton of money off the 360 and they are makeing money
on the hardware also.. they are in no rush to come out with the 720.
plus this gen is pretty much set in stone. nintenod frist place .. 360 2 place ps3 3 place.