I think the mainstream gaming audience is pretty fickle. Look what happened to Sega. And look at what happened to Nintendo.
Brand loyalty isn\'t something the common gamer is engrained with, historically.
For various reasons, the masses will switch companies. And at the pricepoint Sony is choosing, I could see Microsoft and Nintendo really looking good after a year or two.
For instance, check out the steeply priced PSP that is being outpaced by the less advanced but innovative and fairly priced DS.
Heh, when you make the Xbox 360 price tag seem rational, something is up.
-Dan