I think the price drop will come once they iron out the reliability issue. No point in selling more defective consoles. They are costing them a lot of money right now especially with the warranty extension and the fact remains that the 360 is a lawsuit waiting to happen. I wouldnt be surprised if they were forced to recall them all and I am sure MS knows that its a possibility. I am sure they wanted to drop the price but they have other issues to consider.
Do you want more people to buy a defective console and never trust your brand again?
What will the costs be for selling the current console with the new warranty given their breakage rate?
Are they facing a lawsuit that may call for a recall (I imagine they must be else the warranty wouldnt have been extended)?
Furthermore, a price drop will have a much more powerful effect during the holidays anyway. If MS can get a new console out before then and drop the price it will probably bury the PS3 in America.
