I dont think Microsoft is doing particularly bad, they just aren't doing as well as Sony. I don't think Microsoft wanted to have the biggest install base because of price alone. No one wants that, and high sales could only last so long based on that.
I don't think this price drop is doing to do very much either. Before I thought MS would see huge numbers, but I am starting to really doubt that now. They are definitely going to see a boost, but I still think they will be selling under 100,000 a week and will still be losing WW.
What Microsoft needed to do was buy more studios and create their own image. Trying to replace Sony as the sequel to the PS2 worked at first, but I think there lack of innovation is killing them now. Price cuts matter, but like people said last year about Sony, software is the most important thing and they have been seriously lacking all year long.
