While fiscally,this might be a good move,personally,I really don't see it happening.
One of the main selling points for PS3 consoles was the fact that the online availability was free,so to completely take that away wouldn't be a good idea in my opinion.Having both options gives people more flexibility.If anything,I think that XBox Live will have to find a way to have a free service to try and sell more 360s.
Let's face it,the only people that are buying new 360s or PS3s are those who have broken ones.The "new customer base is probably going to take a really sharp downturn this year,so that's why they need something worth getting a new console for,for first time buyers. The only market left for console gaming is to get those who are single platform owners to jump to the other side.This is painfully obvious with the Kinect and Move that are on the way.
Personally,there's nothing that would entice me to get a 360.I'm just not interested in any of there exclusive title,with the exception of the Gears Of War games,but there's absolutely no way that I'm paying all that money just to play a few games,hence, it always has been and always will be about the games.The games will always sell the console.If the games suck,the consoles will as well,pretty much by default.
The Wii is the exception because it capitalized off of the stupidity of peoples propensity to fall for a gimmick.And even though the Wii still sells,it seems that part of the initial marketing strategy was to make sure that the Wii wasn't as available as most systems(this was stated to a friend of mine by a best Best Buy employee).They would ship out a lower amount of product,making it seem like they were flying off the shelves,so the illusion was set that the harder it was to find,then it must be something "special",and the more the masses wanted it.Add to the fact that it was way cheaper than the other two.I have to give it to Nintendo,they always have been masters at marketing.
I think that the Wii is pretty much on the way out.Everyone that I know that has one has it sitting collecting dust,hence,it's all about the games,which they have none that are really noteworthy.
Sorry that I went off topic there for a minute,but I was on a roll I guess.