Windows is so far ahead of Mac and Linux in terms of game compatibility that MS can afford to keep Halo 3, Gears of War 2, Fable II, etc. exclusive to the 360. It benefits Microsoft more to boost their Xbox division because Windows doesn't need a gaming boost. Mac and Linux aren't going to overthrow Windows as the primary PC gaming OS platform anytime soon. If I were a Microsoft shareholder, I'd want them to keep all first-party games (except stuff like Age of Empires, Microsoft Flight Simulator) on the 360 exclusively as well. And I'd advise they release a firmware update on live that allows you to use a usb keyboard and mouse.

It does screw over PC gamers (considering that MS used to really push PC gaming back in the day) but honestly, what gaming company hasn't screwed over their user base to some extent? These companies don't care about the consumer. They just want your money. Their goal is to deliver the largest profit possible for their shareholders, consumers be damned. Gamers will continue to buy games (unless they turn to piracy), so as long as companies continue to release games people want to buy, so they know that they have the upper hand. And this is why stuff like piracy scares the hell out of them. Because it takes away the dominant position they have in the economical relationship. And this is why I don't have any sympathy for most gaming companies that cry about it. That's how karma works. And yes many diehard PC gamers will refuse to buy a console or play a PC game on a console but MS knows that they can get even more business with the console crowd. This is why only the Age of Empires and Microsoft Flight Simulator stuff is going to stay PC exclusive.

As for the PAL regions race, I'm shocked that the PS3 has had the upper hand over there when piracy is huge in those regions. The incentive to mod a 360 is hampered by hardware failure rates (esp. RRoD, e74) and xbl banhammers but it's still shocking that higher-piracy European countries would rather buy a console with zero piracy over a console where piracy is possible. It's expected that PS3 software will sell more over there due to piracy but I'm shocked to see how well hardware is doing there in these pirate havens. Maybe the pirates are buying used 360 consoles (since consoles are so expensive in Europe and pirates tend to be cheap anyway).

what do we mean by "beating"? In terms of developers, if a same game sells more on one console than the other, that is what they think of "beating" the other console, which certainly not relevant to how many consoles are being sold (example FIFA 10 wii sold 40k while ps3 sold 800k). Do we mean by how many consoles being sold? that is not what sony and microsoft have in mind of "beating" the other console because sometimes they LOSE money when they are selling their consoles. so what is actually defeating and winning in terms of video game industry? it is a very broad and general term but i think both sony and microsoft is a WINNER in this generation.

far too early for this talk i think we will have a fair idea after this xmas and after we see how well sony motioncontroller is received and how well natal is received. Sony does seem to have the upper hand in the new motion controls as they wil be hitting the stores first and from what weve heard alot cheaper

Once again, that stat is total bullshit...when holidays come the PS3 will most likely outsell the 360 by a bigger margin that 100k due to the price cut and software lineup!

It's too early to call it. However, I'm really glad that the price cut has given the ps3 a lot of momentum leading into the holidays.

Yeah, because 360 will just sell what it is now during the holidays but the PS3 will rise beyond. What happens if the 360 bump actually goes bigger than the PS3 bump? Remember last xmas? what then? You're the one taking a one sided argument and flipping it so it is TA DA! One sided.

Anything is possible, but the bump in sales  is not going to magically cut years off of the catch up time. Maybe weeks or a couple of months, but not years, if at all.

No, it won't. If anything, the gap will grow once MS cuts the cost of the 360 and Natal comes out.

That assumption is a bit preNATAL. Even Nintendo's much hyped waggle-stick turned out to be fun for only about 5 minutes because in reality it makes games rather unplayable, and this is even worse. I certainly don't want to jump around like a monkey or keep my arms outstretched for hours while playing my games, which sounds more like a form of punishment than relaxing entertainment. And guess what, there are millions of gamers like me who don't want this, either.

And as for a pricecut, that's what Micorsoft just did. Please remind me how that worked out.

How does that even make sense?  The 360 didn't have 2.5 years on the shelf before PS3 to get that initial start, so, why would the PS3 need it?  PS3's going to sell around 4.8 million in december alone.

I think people ignore the pattern this gen. One console cuts price, sells loads of consoles for 3 months or so, returns to saturation point. Then another console cuts price, sells loads of consoles for a few months, then returns to saturation, rinse and repeat.

Right now it is the PS3's turn. But one thing that we know for sure is that in US the numbers between the PS3 and 360 are getting close again. We also know Japan is not the force it once was. So expect those numbers to drop quicker then they used to. Which leaves Europe.
UK is now a MS country. It is the 2nd biggest games market in the world. So if Sony claim the rest of Europe and Japan it will be difficult for them to win if MS hold UK and US.

Another key thing people tend to ignore is what happens next september time. PS3 could stay in front like it did last year and sell a million or so units more then the 360 during that entire time. Clawing back the gap to maybe 5m units at best. But then september comes around and MS decide to price cut and introduce Natal. In the UK the next 360 price cut would see the console at just £99. Because PS3 has had it's price cut now and re-modelling it is unlikely they will be able to price cut again just 12 months later.

So while it looks good for Sony right now, they are selling lots of consoles. The future looks limited in terms of manouverability with what they can do with the PS3. If The PS3 was still £250 going into holidays 2011 against a £99 360 with Natal then it will get destroyed sales wise.
And that is how im sure it will go. MS feel no pressure to do anything. They are in a healthy place over 7m units ahead of the PS3. Even at it's current rate it would outsell the 360 worldwide at around 200k a month. Meaning in a years time it could have made back 2.4m units on the 360. Even then the 360 would have a huge gap and hold two aces up it's sleave. They still have cards to play, where as this price cut and re-modelling for the PS3 was it's last card.