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Cactus said:

I didn't read the posts so forgive me if I copied what anyone said, but this pricecut (I mean worldwide) is win/win for Microsoft.

This will not only increase sales, but if Sony also decides to counter and cut the price of the PS3, they will go further into the red.

 

Thats not necessarily true. They are making more money on games than they lose on hardware right now. Thats from Howard Stringer himself. They also reported a gaming division profit last report (amirite?) while Microsoft reported a loss?

So no, this will push Microsoft further in to the red. Its a desperation move, and Microsoft and Sony have basically both revised their hardware to the same point.

Both use 65cpu/65gpu.

So this conception that microsoft is so far ahead of the game and sony can't catch up is not true. Microsoft will lose lots of money to remain competitive. Sony still has the option to cut price, or keep price at the same lame to ensure they will recover losses. 

The pricing advantage was proven not to be enough earlier this year. So what this turns out to be in the end is merely desperation. They were at a lower price, but still were losing by 1.5million console this year. After not making any money last report, don't you all think they would maintain price in order to make some money if they could?