@OP
I dont think you realize what you are saying. The Wii has been breaking all kinds of weekly and monthly sales in NA. To beleive that a price cut will magically cause the 360 Arcade to do the same is fallacy.
Here's some food for thought. Price drops are last ditch efforts. When nothing else works to drive demand, a company will drop the price. This is why Nintendo will not drop price, they don't want to raise demand since they can't meet it. So, despite the fact that 360 has a great line up going into the holiday season and new features that a great (netflix), demand hasnt increased. So hence a price drop.
MS's stradegy is to hope that the price drop effects the demand enough to make the attach rate of the holiday line-up very profitable. This stradegy may work, but it will never result in the hardware consistantly beating the Wii in NA.
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