MS are I suspect cutting quicker than cost reductions at the moment, meaning profits (assuming they make some on console) are going to reduce if I'm right.
But lack of traction in Japan, slipping behind PS3 in Others and seeing PS3 make up ground in US was clearly too much for MS to just sit and let happen so they're reaching for the price response.
Ideally this will give enough of a spike (but not too much of a spike) to encourage Sony to consider a price cut just in time for the Holidays.
Try to be reasonable... its easier than you think...







