Sony’s PlayStation 2 (PS2) dominated the game console market 1997–2003 with 123 million units sold. Today, Nintendo’s Wii has 62 percent of the market. Prices to achieve this spectacular growth have fallen continuously from $400 at launch to $250. Sony’s PS3 with 20 percent market share at $1,000, then $600, and now $399 competes in a more up scale segment of the game console market against Microsoft’s Xbox at 18 percent market share with prices that started at $700. Initially Xbox and PS3 tried to compete head-to-head on add-ons such as extra hand controller sets. Now, brinkmanship pricing has broken out with Xbox 360 discounted from $760 to a range of $400 to $343. Which firm is likely to blink first?