MS faces a tough battle in Europe. The Microsoft name has been slandered by the EC goverments for years, while those same governments use MS as it's own personal ATM machine. MS also has to deal with the perception in Europe that Sony has a better machine. Put the two together and it's a tough challenge to get past, one I think MS has actually done rather well with.
The price cuts are not desperation or confidence merely business, MS wants to stay competitive and the only tool they have to do so is price. It's Microsofts way of saying "We're just as good as they are and were going to force you to make a tough choice, stick with your bias or buy with your wallet."
Sales should increase, especially in England, and should give MS enough leverage to stay competitive for the next couple of years until the next system arrives.
Good post DMeisterJ...I've seen too many slanted posts lately, we should all be able to discuss without flaming. :)
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