If it drops to the 200 or 250 price range THEN it MAY have a chance to catch up. And only because its a reasonable blu ray player.
At 300 or more USD it remains out of reach for a great many people while 360s will start to sell like hotcakes with just a few changes.
#1 Halving the price of the HD and Wifi units.
#2 Keeping project Natal under 200 USD and insuring that lots of developers use the technology.
That is nowhere near as difficult as Sony's position. Where its ONLY advantage will come from being a good cheap blu ray player and potential game console. I say potential because many gamers have gone for the 360 and many movie folks have gone for the PS3 which is a bad situation for sony because that means even less games and assesories sold. Also this new sensor system has to be out in 2009 to have any chance of competing with Natal.
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