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And if the new 60GB SKU was $299, then all other SKUs would have to drop respectively or sales of the $279 Arcade would be completely cannibalized to the point that it would make almost no sense to keep offering them to consumers.

I'm sure most have already noticed that MS and Sony have essentially come up with virtually the SAME strategy; maintain current prices of their various SKUs while adding perceived value to consumers for their "core" SKU (currently the 40GB PS3 and 20GB 360) through additional HDD space while discontinuing the old/replaced SKUs.

Neither one should be particularly eager to drop price at this point, less the other follow suit, effectively canceling out the supposed advantage and losing more money on each console sold.

Not particularly promising to those holding their breath for another string of price cuts all around, but there is still a remote chance it could happen as the holidays approach.

More likely, holiday bundles will be offered instead once again, from both companies at current prices.