Never even implied that it was, it's just the PS3 is coming off of a major redesign, just had a price cut, and is selling ever than it ever has before.  Why would you cut the price?

Wii is selling gangbusters too with its minor price cut. Xbox 360 is still selling quite well too. They don't 'need' price cuts from retailers either. I just find it weird that two out of the three get additional price cuts and the PS3 doesn't, especially since this is purely retail-based.

Because everybody likes 360 better. The retailers are in cahoots with Microsoft to make sure Sony cant win. Since you asked, and that's obviously what you're implying.

Also, the 360 didn't have a price cut in America, and I dont think in EU either...if you're referring to Elite becoming 299, that wasn't a real price cut.

It's only natural to me that 360 will get the most "help" right now because it's price is abnormally high for what you get. 120GB 360 and PS3 cost the same, yet you get free Blu Ray ($100) free Wi-fi ($100) and free online ($???). So 360 is going to get the most discounts. Also retailers like discounting the Arcade because it's low price makes headlines ($99 Arcade deal was an eyegrabber, moreso than 199 PS3 would have been).

I look at it like the Elite's real price isn't 299, it's more like 275, it just gets passed along in the form of discounts. Some weeks you will pay the full 299, other weeks there will be some discount. Overall it averages to like 275.

This isnt purely retail-based. MS Marketing is making deals with retailers. They dont need to offer $50 per console for a retailer to offer a $50 gift card. Retailer knows that people will come back and use the gift card at there store and probably spend more than $50. MS Marketing can do this because the 360 is more profitable than PS3 (Which sells at a loss still).

cuz Microsoft GOT THE POWER!!!!

I believe the margins are quite good on 360 and Wii or at least comparitively so.

Essentially the PS3 is sold at a very low mark up due to its cost to manufacture.

So a store can cut 20 percent off the Xbox and Wii and still make a tiny bit of cash or nearly break even.

Cut 20 percent off PS3 and you are trading at a loss. It does still happen but it will be as a loss leader.

That's suggesting that retail takes huge amounts on a console. I thought it was said that on average consoles earn a few dollars each for a retailer. I doubt retailers get up to 20% of a console and can still make money by cutting that 20, that would be insane.

For those saying these deals are down to the retailer that may not be the case at all. In food and electronics many promotions and deals are in fact Vendor Funded - i.e. the vendor, in this case MS, pays for much if not all of the deal.

I'm not saying these are vendor funded, but I think it's likely they are. I see no reason why Walmart, Sainsburys, etc. would simply reduce their own margins significantly just on the 360 and not push PS3, etc. to a similar extent.

Personally, with the recent PS3 jump on the back of the price drop, and the YOY drop for 360, the 360 was the console that needed deals this December to remain competitive, particularly in US/UK.

Have major retailers by coincidence decided to offer the best deals in these countries on this console, or has MS decided to fund promotions to make sure it doesn't loose to much ground to PS3 this December?

I think probably the latter, myself. The timing, approach and scope of these deals implies to me they may be vendor funded. The PS3 would probably have less vendor funding as Sony have to watch the spending and, truth be told, right now the console doesn't need additional support from deals anyway, ditto the Wii.

Often vendor funded deals are kept fairly quite, with terms and conditions known only to senior staff at both the vendor and the retailer, so we may never know for sure unless someone has access at that level.

EDIT: just for those who always take these opionions wrong, I'm not saying MS is cheating or anything.  Vendor funding is a common strategy that can be very effectively if carefully timed.  If MS did fund these deals, I think it made the right move and the numbers show they will reap the rewards.  If MS didn't fund these deals then by heck they're sure lucky all these retailers decided they wanted to heavily push the 360.