Yep , Like i Said , 360 Just Cant Sell As Well At the Same Price as the PS3 , Even With The $100 less Arcade , And MS Could and Should Cut the price and stay more Competitive .

You missed the point...  the 360 can't sell at the same price because it SHOULDN'T BE the same price.  Right now every Elite sold is bringing in a high profit margin while the PS3 is still losing money for every console sold.  The 360 by design is much cheaper than a PS3 to produce (no blu-ray drive, no bluetooth, no wireless starts to add some big savings since these are not always essentials or cheaper alternatives exist).  Whenever the PS3 and 360 are the same price, the PS3 should always outsell the 360 because it does represent leaps and bounds more value for the same price.

As I said, the only reason MS didn't cut the price and steal the thunder right from Sony's wings is because they are preparing a draw dropping, knock out punch of a year next year with heavy advertising of all their blockbuster games, reduced production costs from Valhalla or die shrinks and MAYBE a redesign of some sort, and of course Natal which as stated many times by many MS reps will be treated as a new console launch.  Things will be very big for MS next Fall.

yes yes intriguing *smokes pipe*

The 360 has more room for price cuts because it's cheaper to make than a PS3. But I think M$ is happy that they're finally in the black these days after burning a lot of cash on the Xbox brand. I think MS is content to just recoup on that investment for the rest of this gen rather than try to start a price war with Sony (whom are bleeding cash on the hardware). If Sony cuts, MS should meet them. But MS shouldn't be the one starting the cuts right now. So as long as the 360 has the third party support and Microsoft Game Studios continues to put out games, M$ will continue to push software, continue to push gold memberships. That's where M$ makes their $$$. With M$ having a large install base advantage in NA, I don't see the third-party support drying up and MGS has a great upcoming lineup (Halo Reach, Alan Wake, Fable III, Crackdown 2). So as long as they keep selling software, they are good.

The actual worldwide hardware console war isn't all that important. The Xbox 360 won their constituency (the 11-34 year old North American male... yes 11 years old. They love swearing at people on XBL). Let's face it, they and Sony don't stand a chance with the Wii demographic: Nintendo fanboys (they bleed Nintendo until they die), children, 'casuals' and women (though I've seen lots of female pornstars playing on a Xbox 360, if that counts. lol). NATAL probably won't change things and the PS Motion controller definitely won't (the perception will be that Sony copied Nintendo). Outside of that demographic, the Xbox 360 won in North America and North America is the biggest market in the gaming world. Whatever is successful in North America, the gaming industry won't ignore. So M$ has nothing to worry about. They'll take the bronze worldwide if it means making more money. When the NextBox hits, then M$ should be focusing on price more and loss leading because the focus at the beginning will be to get the NextBox into a whole lot of homes and get North America locked again (that's all they need to get into the black later on). MS shouldn't ignore Europe or Japan. But they need to market to Europe and Japan through other ways than price cuts.

i didn't Miss your point at all, and i knew Your point befor You made it! , I know Why PS3 is outselling 360 , and i Said THEY should Cut the Price

Each year Sony Has brought Down The Manufacturing cost of the PS3 and by next year Sony Might Cut the price again they have already showed this gen they are willing to Lose money . And im sure MS Does have a plan for next year , never said they didnt , i Agree with you  somewhat, But you think Nintendo And Sony Dont Have plans of their own and wont Counter ? The Wii will Be Natals biggest Competition , and Nintendo Can just as easily Drop the Wii's Price . or who knows maybe nintendo Drops their Own Camera or something that destroys Natal same goes For Sony , Lets not Assume things Too quick , we Still got a long ways to go. only time will tell .