What I'm wondering is who exactly would buy the 360? I'm thinking a lot of the people waiting to buy the PS3 already own a 360 and they are waiting for the PS3 to hit the ideal pricecut before buying the PS3. Most of my friends that own a 360 say they'd like a PS3 if it weren't so expensive.  I'm not saying that the PS3 will end up outselling the 360 but I do believe that the PS3 has the room for the most possible growth this year. Not to mention, where will be a huge rise in the multiconsole household over the holiday season if there are price cuts (which will help both Microsoft and Sony and in al likelihood Nintendo as well).

Next year is another story though, when Natal and the PS3 Wand release, that will be a deciding factor on who can tap into the casual audience that have a Wii but I don't see it happening until those things release. I say both of them because Natal seems like a great idea that is getting a lot of exposure, but can it keep everyone's attention over 6 months from now? How fresh are Microsoft going to keep Natal in our minds over the next few months? It all really just depends on what the companies show off to the public closer to the release date (because lets face it, us Americans have short attention spans). As of right now, Natal seems like the easier choice since they are appealing more to the casual audience then Sony are and they are getting the exposure. But Sony could release some pretty awesome products but in all likelihood they will screw up with getting the name out there by creating commercials that make no sense and ignore the audience who would be most likely looking forward to a new console.

None of this is to say that the console wars won't end up as Wii > 360  > Ps3. But I believe that IF there IS a holiday price cut, it could be the deciding factor of PS3's sales problems.