Price is not a factor with the 360 here in Europe, the demand is just not there. No amount of price slashing will make it more appealing in the long run imo.
Don't get me wrong, I actually think the 360 is the best console of the lot so far but the people of Europe (and Japan) just don't seem to want it.
The pricecut will have a similar effect to that in Japan; massive spike that dies down very, very quickly I think.







