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I think this has more to do with the system being brand new last year this time and the people who really wanted it were picking it up in heavy amounts. Right now most of the people who would pick it up at the current prices have and so a price drop is needed to ask more people to buy or MS could rely on their upcoming games (Halo and GTA most of all) to convince people to pick up the machine without the need for a lower price.

I still think there won't be a 360 price drop till pre holidays (November) because they will sell consoles by way of Halo and GTA.



Thanks to Blacksaber for the sig!