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Gballzack said:
A price drop would work for the 360, but they honestly don't need it. They don't need to compete with Sony because there is honestly nothing for them to compete with at this point in time. They're still selling better thant he PS3 and showing no lag in sales, and until due time have no reason to make fans think they need to dance to Sony's tune (i.e. they need to counter everything Sony does or they can't survive).

One could argue the price cut would be a surprise before the Halo3 release to make the phenomenon even more magnificent.

 

MS needs to do to Sony what Sony did to Sega - namely kill them before they get a chance to get off the ground. This year Sony may not seem to present much of a threat (I would disagree, but that's another debate), but there is little question that next year Sony will be in a much stronger position to challenge the 360. Thus it behooves MS to go Tonya Harding on Sony's knees before things ever get to that point.

That said, I don't think they have to respond RIGHT NOW because Sony is already catching shit for its maybe-its-a-price-drop-maybe-its-not tactic getting spilled to the public, and because, price cut aside, there is nothing new that might sway a consumer to the console. However, if they wait just a few weeks they will be able to better assess the effectiveness of Sony's cut, and time a price cut with the release of Halo3, providing a strong 1-2 marketing punch, which can be followed up by a flurry of top notch game releases.