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Microsoft is already competing in price (they are now officially lower), but I know what you mean. Not that they will at any time in the near future, but should they feel threatened they could easily drop the price by at least 50% and likely still make a bit of profit.

Also when it comes to VC games. They already own the rights to the game, and it's already made. They take a screenshot or two, write up a description, and toss it onto a server. Easy million or two.



Could I trouble you for some maple syrup to go with the plate of roffles you just served up?

Tag, courtesy of fkusumot: "Why do most of the PS3 fanboys have avatars that looks totally pissed?"
"Ok, girl's trapped in the elevator, and the power's off.  I swear, if a zombie comes around the next corner..."