Then I sit corrected.

I guess Microsoft are planning to dominate the HD market with any cost...

There's irony in them hills.  Don't worry...you'll get me next time.  And trust me...there will be a next time...just keep your eyes peeled.

Sounds about right.

First off MS has been cutting costs.

Jasper cuts cost.
Moving from 20GB to 60GB drives cuts costs.
Time reduces costs.

Well like many have said if there is a hardware revision it may free up some costs allowing them to drop the price and make the same profit on each console by bringing in more sales due to increased numbers.

If that's true, I'll pick up an arcade soon. I see used ones on craigslist for like $225 but a new one with warranty would rock.

Are there any games the arcade can't play? I'd like to get Soul Calibur 4 and $200 sounds like a very good price point.

It's most likely true and sony will match the instant it happens.

So if 60 gig 360 is $300

80 gig Ps3 will be $350.

It's amazing people assume that Microsoft, by dropping the price $50 on all SKUs (and a bit more on Arcades), that they are going to magically lose any and all profitability.

Doesn't any one realize (of course, most arguing are Sony fanboys), that a September price drop coencides with the new hardware that's cheaper to build?

Exactly even if it is only a small profit off each console they are still going to make a ton of money off the absurd software sales they will get in Q4 as well as XBL.

@Ragestash I doubt that they would match it any time soon since I believe an article was posted saying that there would be no price drop this year. The thread is a month or so old but even still why would they drop the price if it sells just fine? Sony is not going to drop the price just so they can lose more money on consoles to satiate the fanboys and gain marketshare. Thats not how business works.