Price cut - When/How Much

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I think everybody is missing some key points. 1. April sales are not like December sales, there is a significant slowdown in April every year. 2. PS3, Wii shortages will no longer be a problem come May. 3. Consumers (like me) are waiting for price cut, if one company cuts its price, the others will follow so people don't wait on the sidelines or buy the other console they see in the news. 4. Microsoft cut the XBOX price in May 2002 before Sony did. Well not really, if you remember Microsoft scheduled a press conference to announce the price cut, and then Sony put together a last minute press conference a day before Microsoft to announce a price cut of their own. Sony did this to act like it was the leader and Microsoft the follower, but in reality Sony scrambled to make the announcement first because they didn't want to allow Microsoft to convey a position of strenght. It was not desperation on Microsoft's part, XBOX was doing much better than Gamecube in the U.S. at the time. 5. Why would Microsoft wait until PS3 is outselling 360? At that point a price cut is too late. Their goal is to stay ahead of Sony, not let Sony dictate their moves. A Microsoft price cut forces Sony into greater losses. Isupply estimates that XBOX premium costs $323 as of November. Microsoft can afford at least a $50 dollar price cut. http://www.isuppli.com/news/default.asp?id=6919