One of the points I've made is that even with a price cut, will MSFT necessarily sell MUCH MORE consoles compared to Sony? I think it is not likely.
Unless they make it so that a 360 is $199 or even lower, then maybe. But a token $50 price cut doesn't seem to do it.
This is why I think it would be difficult for MSFT to have a lead and sustain and/or increase its lead in console sales.
1. Without a SIGNIFICANT price cut, it won't sell much more than PS3
2. Without a price cut, the only way to sell more consoles is to increase demand through games and other COOL features.
Either way, it would cost a lot of money for MSFT to execute either strategy. Price cut will hurt, while making the X360 "cool" (whatever that means to the consumer) means additional investments - whether in exclusive games, or exclusive features.
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