Why doesn't Microsoft drop the price of the Xbox?

[elprincipe]

They aren't dropping the price because they are aiming to be profitable for the first time in the Xbox division's history by the end of the year. Fact 1 = a price drop will make no difference in Japan Fact 2 = they are $200 cheaper than their main competitors without a price drop and selling better then them in the biggest market Fact 3 = there is pressure from higher-ups to get profitable; lowering the price would move them away from this goal But this hardly rules out a price drop later this year, especially if 360 sales slow in the U.S. and Europe compared to PS3.