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WiiStation360 said:
Sony and MS are both suck in a battle between market share vs. profitability. Where do they draw the line between attracting more consumers with price cuts, and actually making money to counter the losses they have already sustained this generation?

Perceived value.

Sony needs to bring the perceived value of the system higher, while not losing money, which is focusing on the cheaper to produce 40 gig, but throwing in the 80 gig hard drive.  And pricing it just fifty bucks more the 360.  So people can say I can get a 60 GB 360 without a BD player, or an 80 gig PS3 with one for fifty bucks more.

Free XBOX Live or a lower price point could bring the perceived value of the 360 up more.