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PenguinZ said:
Microsoft can afford to absorb losses... Sony can't.

Silly argument that I see keep popping up. Do people really think that MS had a price drop to just chuck money away? No, they did it to make their install base bigger and therefore make more money on software sales  and live subs.

What Sony have to decide is that if they drop their price, how much would they need to so that profit from increased install base outweights the loss they would from profit from console pric drop. It seems that its not time for a price drop.

For MS a price drop is more beneficial and an easier decision to make.

This also has nothing to do with arrogance and anybody with a slight understanding of business can see why.