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mrstickball said:
The X360 price cuts happened in February.

If anything, the last set of price cuts were desperate, because they didn't follow typical Microsoft trends of price cuts after major hardware revisions.

Also, correct me if I'm wrong, but the USD is trading at 0.55 per pound...Wouldn't this put GB pricing only slightly above US pricing? It doesn't seem that Microsoft is being desperate by doing this, just cutting the prices to a similar ratio vs. US and Japanese prices.

it also means lower profit margins, if any. the arcade retailing at £159.99 is already VERY cheap in the uk for a current gen hd console. lowering the price even further doesn't make it more appealing here. selling a hd console for that price would probably tarnish the console image in my opinion.

people in the uk don't mind paying £299 for a cosnole, because it usually means that they are getting what they paid for. a £129 hd console won't be taken as seriously as you may think. hardcore gamers may realise the value, but the casual (who are the HUGE majority of gamers out there), won't.