Microsoft - as Shane Kim has said - are very aware of the popularity of the PlayStation brand, and if the PlayStation 3 were to be priced at this figure before 2008, and even with a rumoured $50 price drop occurring for the Xbox 360, that difference alone will not be enough to sway that large fanbase from buying a PlayStation 3.
According to Kim, this "thankfully" hasn't happened yet and if it does, I just cannot see it being feasible for Microsoft to drop the price of their console down to $299. They are quite limited in regards to this, they can't keep going down on price - something Sony can.
But regardless of what happens, 2008 will be pivotal and in my opinion, the forecast then will determine who wins this console war.
In my humble opinion
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