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Basically they don't need to. MS and Sony don't still see the Wii as a competitor. So, as for MS they are happy with its selling performance in US and EU. (Japan price is cut to a loss already). The US and EU price will remain high until one of two things happen: A. PS3 sales rival 360 in one of these two markets for two consecutive months. B. The smaller chip comes out and *after* the price reduction they will still be profitable on each model sold. I still think that in June/July one of these two things will happen. My personal bet is on B, as I don't see PS3 selling better than anyone in US or EU until their price drops by at least $150.