Eastmen I was reluctant to link this news because as Vic stated it somewhat harsh, in fact I would say that it is on purpose polemic and on top of expressing an opinion the non fainted goal of this kind a news is to have some more visitors
I stated that i found some points not bothering, as I don't care care that much for technical choices that feed the "fan boys war" (example optical supports, the N64 had great games every systems have/had limitations everything man made in fact).
I think you are "over reacting" on some points that purposely made polemic. I think the news could three time shorter while keeping points worse a discussion.
Basically for me it's:
Sony is catching up with its online offer.
Sony online offer is free.
Sony has more editing power.
Sony has likely caught up in user base in Europe
Sony still can't be dismissed in japan
Sony has catch up in sales rate in US
I would pass on titles specifics comments (as cristal balls have failed quiet often lately
) and on some functionnality advantages (due to price considerations as you pointed at) and the wii as the wii is stealing consumers from both sony and microsoft ans thus is a challenge for both.
That's it and I think more and more that Ms strategy should be discussed in a proper the same way Sony's one is. It's the NPD thread and thus it should focus on US sales. In US both Ms and Sony are likely to do well, who will come on top? I would say Ms but it's a personal bet and it's not that important as they will be close enough for this round. Sony won't close the gap in instal base anytime soon.
But if you start to consider the whole picture, it's a different matter especially as these systems are here to stay a long time. Ms would be way more weaken if they lose editors traction (ie ps3 user base start to be greater than 360's one). That's my concern and why I agree with some of the news points.
Even if things go well in US Ms have to fight in its strong territory (that said price is a good start), and in Europe. In Europe price cut has slightly slowdown sony catching up but without proper strategy they are for thread this winter (and the ps3 price is still high, too high).
I think Ms must do some strategic moves and aim at lower revenue (not loss) for greater good.
EDIT
I don't want to make it sounds like it's an emergency as even price advantage even in Europe will be a leveler.