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IF 360 didn't have RRoD, a $100-$150 price cut on last fall (2007) would have made sense. A $250 core, $350 Elite and a $180 arcade would have killed the PS3. PS3 would probably be on life support/fumes and would have become a Sega Saturn. Unfortunately for Microsft, they had to take a $1,000,000,000 bath on the RRoD, so they image was tarnished AND they couldn't justify to shareholders such a move (though the resources were available)