Thanks for explaining the basic logic.. 

Wow.... only the fanboys think this is actually a $99 360 vs a $300 PS3... this is a $200 stripped down Arcade 360 vs a $300 PS3. Walmart is offering a gift card that has to be used at their store for their products. You still have to pay $200 to get the console....

Great Point.

I wonder how big the drop off will be for the 360 the week after ;)

isn't this like a premature ejaculation? say that 360 wins for 1 week... so? the ps3 has been winning for 2 months.. and this $100 gift card thing isn't permanent.

Probably negative drop off (aka increase).  Unless you mean the week AFTER this week of MW2 release and after the Walmart deal finally expires.

Why the heck are you being so dramatic? One month in one region won't decide the entire holidays.

whelp, walmart is soon, if not already sold out and won't be offering that special again.

170,000 sounds about right.

Shipments... they sold out as of 9:00 AM on Saturday.  But so long as they keep getting more shipments throughout this week they'll keep the deal going.

I disagree.  You might at the same price say it includes some items that increase it's value, like BR or wireless, but to say it's a better product is another story.  I still think the online is lacking and overall found the motion controls be less than helpful.  For me, I also think they could have evolved the controller.  It's just not as friendly for those of us with larger hands.  As for the games, it is getting some good games now but the blockbuster PS3 games are spread way too thin, now even GT5 isn't going to be released outside of Japan till past March.  While the worldwide sales of the PS3 will likely sustain the PS3 for this generation, even if they keep having to sell the system at a loss, being behind in NA really hurts them.

Still, the previous poster is right.  Sony had to really screw up to be in a position to play pricing games with Microsoft and they did (and to add insult to injury, Nintendo stole their launch thunder and gutted thier casual market).  Now Sony has had to continue to sell its console at a loss to stay competitive with Microsoft.  Sony needs the NA market but lost much of their former hold.  So, be careful how you flip that argument.  Sony has a console that did not do well at a high price point and has been pushed into tightening that belt around their stomach even tighter just to try and build momentum.  These price cuts are hurting Sony deeply and the goal is to win back the NA market.  They know they have the Japan and European market (in the HD gaming arena), but the NA market is one homogeneous market that can sustain a console just by itself.

The 360 couldn't have competed with the PS3 at the same price if they were launched at the same time and with the same quality of library at the time, but that isn't what happened.  The 360 has momentum now, so it can compete with the PS3 even at the same price.  Microsoft does have it easier if they do drop the price of the 360, though.  The hardware is cheaper and they have never had to remove features to drop their price (BC still there and same USB ports, vs fewer USB ports, no BC, removed card reader). 

The PS3 slim is still a great idea and a good product, but I don't think Sony dreamed of being in this situation.  Selling the system at a loss this late in the game is a situation they have been forced into.  Sony has to stay even with Microsoft in order to grow their market, so Microsoft is now dictating how the HD console pricing is going to go, not Sony.  Sony is being forced to react.  That is a bad spot to be in.

I give this thread a 9.3.