Showdown: is the Xbox 360 price cut desperation or boldness?

[Seihyouken]

Jordahn said:

Seihyouken said:
Why does everyone feel that Microsoft's price cut is either bold or desperate when it's obviously both.

The upcoming 360 price cut is a bold move out of desperation.

 

Any desperate move is bold in itself.  But the context here is that is Microsoft having a 360 price drop because it's not needed so it's a bold move, or are they doing it out of desperation because they don't have enough faith in future 360 sales without a price cut?

If that's the case then the price drop is undeniably out of desperation because absolutely no successful company will ever reduce the cost of a product and intentionally make less money off of every unit sold unless they feel that they have to in order to keep the product successful for the future.