One thing I was thinking is that if both companies KNOW they wont gain any real advantage with a price drop, and they both have huge titles coming out that will move consoles, maybe they kinda agree that waiting until the fall is best.

Why lose money when you know the situation will not change? Any price drops will be countered, so why do it? I know that Sony doesn't want to return to last year in terms of sales, so I think they would bite the bullet to keep the PS3 in pricing range fo the 360

Well to be honest I dont think they can announce that bundle and say it will be $399 and expect people to buy the 40gb ones until then so dont always trust bundle price announcements.

Maybe it is just an exchange rate conversion like they did recently in Canada.
According to bankofcanada.ca, the US$ has dropped almost 20% (19.55%) against the Russian Rubble between december 2005 to march 2008.
1US$ 2005 = 28.74 R RUB 2005
1US$ 2008 = 24.04 R RUB 2008

http://bankofcanada.ca/en/rates/exchange-look.html

I'm not too sure about this! I'm tending to agree with Jandre...

A price cut would boost sales but would be countered by a PS3 price-cut and thus the situation would be quick to revert back... Fall seems like a good time for cuts, i expect a $299 40GB PS3 to be sold by then :D

Price isn't why the Xbox360 is loosing.
The PS3 is more expensive AND sells more.

A price drop not countered would have little effect, a price drop of the Xbox360 matched by a PS3 price cut would probably end up helping the PS3 more than the Xbox360 ( because we would be back to original situation but the PS3 would be cheaper).

thx

A price cut in March is a no-brainer.

I'm leaning towards a price drop down to $279 for the X360 Pro (someone had a good argument for it, can't remember who).

It will spike the X360 sales to a nice lead world wide, and hopefully well above a steady 600,000 consoles per month, because that's what I need for my prediction to fullfill (+10 mill X360s sold in 2008).

Sony won't counter with a PS3 price drop immediately, because they are in the same great situation now, that MS was in during the fall & holidays of '07, having good momentum and healthy sales. But if the lead for X360 becomes too wide, then Sony will drop in mid- or late summer, and probably cut $100 like last time.

Neither of them want a price cut, Sony have finally begun making a profit this generation, and MS are making a profit for the first time ever.

MS is in a desperate situation so they will probably make the first move.

For me a $299 Pro will not hurt a $399 PS3 that much. Blu-ray+WiFi+larger HD > $100 USD. It will put the 360 back on top for USA though

Given the recent drop in the US dollar, it would be very difficult for Sony to reduce prices in the US market. On the dollar drop alone, the PS3 brings in 6400 yen less from a year ago for a $399 PS3.