The 360 is stagnating right now due to being on the market for almost three years without a huge price cut. It's not an admission of defeat to lower the price, unless you want to call the PS3s' $200 adjustment an admission of complete failure.
The 360 has understandably just about saturated the market that will buy it at its' current price. People have been asking for a drop for a looong time. The drop WILL make it more competitive, and it's absolutely the right thing for them to do.







