The Xbox 360 is cheaper. The PS3 is cheaper. That means that both are, well, cheaper for people to buy. And that means more people buy the consoles.
But how long does that sales increase last?
"I don't believe the price cuts that both companies have made will impact the market dynamics too dramatically in the long term," says Microsoft's Aaron Greenberg. "We typically see a month or two of lifts and share adjustments, but then things tend to settle back to roughly the established market ranking."
Microsoft expects these lower price points will bring into more consumers — who might have been hesitant to purchase a console because of the cost.
Microsoft's Aaron Greenberg Interview [Eurogamer]