I dont think people realize that this is also in NA only. This is the only region where this is happening since the 360 already dropped price in Europe.
The 360 is 3,000,000 away from reaching lifetime sales of the original Xbox in America. Saturation is an issue without casual games that mainstream people actually want to play. The Wii will most likely be much easier to find this holiday season, and the PS3 has blu-ray and little big planet to catch peoples attention.
So while $199 looks good, the Wii is still only $50 more. Saving $50 isn't really worth having your kid miss out on the games he wants on the Wii. Sony has perhaps one of the most mass marketable games ever in LBP, and Gears 2 has a following but completely lost the "WOW" effect the first one had 2 years ago. I personally think Microsoft would have better spend their money they are using for this price drop on acquiring a new studio to make them an innovative new casual IP, not knock offs like Lips.
I really think too little, too late sums up what this will do for the 360. After seeing what happened with the 20gb I don't think its so much pricing anymore as it is demand.
Whoops most important part lol:
So I think it will get a pretty solid boost in September, and around GeOW 2, but at most it will outsell the PS3 by 300,000 in NA. It will still be outsold WW by quite a large margin IMO.
