Yeah, while Microsoft is making money on their machines (finally) they have several yaers of loses to make up for. They will save a price cut for the last possible minute, which is the minute Sony announces a price cut. Chances are, they are already prepared for it to happen this Christmas. But, again, they aren't going to make the first move when their sales are as expected and loss revcovery is at hand. Sony, however, will almost certainly release a new machine this year at the $400 price range. BR is coming down in price fast, and that was at worst the second most expensive component, though likely the most at launch. Between that dropping, losing the EE, and making a few other cuts here and there they can have a $400 model out by Christmas and lose no more per unit than they havve been so far (potentially less) while buying the faith of gamers back. There are masses of people who want the thing but simply can't afford it, and they could easily move 4 million units worldwide (ir not much more) this Christmas if they can get to a price point people like. The trick with Sony just happens to be that its business feeds off itself. BR is coming down in price because they are now selling twice as many movies as the competition. They are doing that because of the PS3. If BR comes down in price, so does the PS3. PS3 price cuts mean additional system sales, which maens more BR sales. Repeat.
You do not have the right to never be offended.
