i think another point worth noting is that maybe dropping the price too fast or too low is not the best solution... Toshiba dropped the prices of HD DVD little bit too fast and they took lot of losses due to it.. but still it didn't manage to get the amound momentum they expected rather MAYBE then people stopped accepting to pay the normal higher price for the HD DVD player...
although Blu Ray also dropped prices but not as steeply as HD DVD and MAYBE it showed to the people that Blu ray is more exotic technology... anyway it is just a guess and average joe analysis ... definitely professional business analyst will be better able to pin point the reason for the HD DVD failure..
So my point is if XBOX drop price to 199 and if it doesn't work then they probably won't have much more room to go further down and will severly limit their option.. i think XBOX price is pretty adequate..
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