Even if they both cut prices, the PS3 increase will be far greater than the 360 increase, if only because of the BD player. No matter how you look at it, $400 is a ****ing lot of money, especially with the economy the way it is. $300 vs $400 is a lot, LOT bigger difference than $200 vs $150 or even $200 vs $300.

i never said that the PS3 wouldn't outsell the 360 if it got a price check. I meant why do so many people think that the PS3 is goina go "gangbusters" if they drop the price.  

Outselling the 360 on a week to week basis could quantify as going gangbusters..Could it not?

The Nintendo brand is definitely stronger right now then the Sony brand. People keeping forget that if it wasn't for Nintendo, there would never have been a Sony Playstation. Nintendo did 2 things that actually got Sony started with the PS1.

1) They restarted the video game industry after the big video game crash in 1983. The NES launched in 1985 in the U.S. and video games was revitalized.

2) Sony was originally working on the SNES-CD for the SNES, but the contract would allow Sony to have full control of any title created on that format. That didn't fly with Nintendo, so they cancelled the deal. That's when Sony went on their own and created the PS1. If Nintendo didn't cancel that deal, there would never have been a PS1.

You can read the whole story here --> http://en.wikipedia.org/wiki/PlayStation_(console)

Sony brand has dropped a few notches not only in the Gaming Division, but also in the electronics. There are better electonics out there now then Sony and some are even cheaper. When Sony had that billion loss last year it wasn't all because of the PS3. They lossed milliona in their electonics (t.V., DVD, CD, Stereo, etc.) division as well. Sony is slowly trying to get their brand back to where it was, but it's going to take awhile.

That'll only happen if the PS3 drops $100 off their system before the holidays and Microsoft doesn't do a price cut at all.

1) It's highly unlike Sony will drop $100 of any of their PS3 models, as they would literally start to lose millions for the rest of the year.

2) If Sony does a price cut, you can bet that Microsoft will do the same thing. Microsoft is not going to allow Sony to start to gaining ground again.

The XBox 360 will be like $99 by the end of next year and Sony won't be able to touch that price. Then the following year a new Xbox 720 will be announced.

History disagrees. In Q4 2007 when the PS3 dropped its price to $399.99, they closed the gap between them and the 360 ($279.99) down to $120 ($140 later in Europe/Japan). From that time until the 360 had a firesale for the 20GB Pro model and dropped it's price to $299.99 followed up with a huge price cut for all models making the cheapest one $199.99, the 360 didn't manage to outsell the PS3 in weekly, worldwide sales even once. The 360 was incapable of outselling the PS3 at a difference of under $140.

Not only would a $299.99 PS3 "touch" a  $149.99 360, it would consistently outsell it between Q1 and Q3. The only questionable period would be Q4, where consumers are significantly more price-concious. However, if the PS3 were to issue a $100 price cut IN Q4, then the pent up demand as well as the spontanious purchases would likely put the two on even grounds in overall sales at a $150 difference. However, the main difference between the two that could push Sony ahead of Microsoft is the games. Sony's Q4 lineup of games is pretty much solid. Final Fantasy XIII in Japan will close much of any gap between the two consoles in the west and Gran Turismo 5 is heavily rumored for a December release which would ensure PS3's dominance in Europe. After those two megatons, Ratchet & Clank Future: A Crack in Time, M.A.G., Heavy Rain, Ninja Gaiden Sigma 2, Katamari Forever, and EyePet rounds out a pretty spectacular lineup. On the otherside, Microsoft doesn't have a single exclusive game announced for Q4 this year. Halo 3: ODST is September, Mass Effect 2 is 2010, Alan Wake is TBA, and Ninety-Nine Nights II is TBA 2009, but only currently in Japan. Everyone seems to be hoping out of necessity that Microsoft will announced a slew of huge games all coming this year at E3, but not much supports this train of thought. Forza Motorsport 3 is an obvious game to be announced at E3, but every Forza Motorsport has released in May so far with a two year difference between them. In the same sense as God of War III, I would not be one bit surprised if Forza 3 is a 2010 title. We'll almost definitely be getting at least one new game announcment from Rare, but the developer's history suggests that they won't have more than one game released this year, if even that. Furthermore, Rare games never seem to sell spectacularly. Lionhead Studios will probably announce something, but I don't think anyone is dilusional enough to think it will actually come this year. I expect the typical standby's for Microsoft this Q4 such as Scene It? 3, Naruto 3, and Dance Dance Revolution 4, but anyone expecting too much more than the above is setting themselves up for massive disappointment.

The funny thing is I don't know if you are talking about 2007 or 2008 or now even 2009.  PS3 supporters have been saying that every year of the PS3's existence and every time it does happen we hear about it again 4-5 months later too.  I makes me wonder if Sony ever decided to sell it for free would the next rant be, "Just wait until Sony pays you to buy the PS3." 

Price cuts, gentlemen, aren't the only affective tool of raising sales.  It's the predominant one but it only goes so far.  360 is already starting to slide down from its price advantage at $200.  We saw Wii slide down from its price advantage in Japan.  There is so much more such as consistent flow of games and mainly exclusives to keep interest up in the platform.  And most importantly, maintaining a dominant, well known brand.  That's what Sony needs to shoot for with PS3.  Assert it's brand back up to the status of what it once was.

 Stopped reading your post after this paragraph.  How is the total reduction of the Arcade/Core and the Pro of $100 in about 3 years a huge price reduction.  Yet the PS3 dropped from $600 to $400 in less than 1 year.  Using comments like firesale and huge to describe the total of $100 price reduction on the 360 hardware shows the bias and shows where your going.

A $300 PS3 will outsell a $150 Arcade/$200 Pro 360. I would be willing to bet on that.

1.) Even a 50$ price cut would provide an increase in sales by a large amount.  I don't know the internals of the PS3 production....Do you? 

2.) Why can I bet that?  This hasn't happened yet, what evidence do we have that it would again?  So if Sony slashes 100$ off of the PS3 at Christmas time...Microsoft is going to counter with a $100 360?  I wouldn't be too sure.   Maintaining solid sales at a higher price, gives you a lot more flexibility as you move downward on the price scale.  Microsoft understands this and won't be so quick as to diminish the price of the 360 in the eyes of the consumer.  They (Like they did before) and Sony did before will watch the price drop and it's effect on their sales and drop the price when necessary.

So let me get this straight.  Sony can't afford to drop the price of the PS3 by 100$ down to 300$  without losing millions upon millions of dollars. Yet Microsoft will be able to drop their 360 down to $100 with no issues?  . 

Also you are forgetting one very important thing.  Saturation.  The 360 is selling as well as it's going to sell.  The PS3 still has yet to reach the lower price points that will give it very solid sales.  I would argue that the PS3 has a chance to put up an increase in sales over the previous year in 09'/10'/11' by reaching the  $300 and $200 price points.  Where as the 360 more than likely will start to see a decline in 2010.

And let's wait to see when the Xbox 720 or PS4 or Wii 2 are all announced before naming random dates.