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Magnific0 said:

I stand by this unrefutable truth:

Microsoft already made their huge move (under $200 X360), and they WON'T have (read CAN'T without mutilating their Games's Division) a price cut in ANY territory until very likely 2010. If during the next 12 months they drop the price of any of their SKUs by as little as $50 it'll be undoubtedly a fire sale, 'cause no one, NONE, would reduce the price of a product as such an alarming fast rate it it wasn't deep in trouble.

However, Sony still has a price-cut move left and I believe they're saving it for next-year when Microsoft won't be able to do nothing of the kind to counter it. MS is definitely expecting to bank hard on this Christmas, specially with Gears of War 2 gracing their holiday lineup. Gears 2 + low hardware price = winning combo, no? We will see January 1st if Microsoft won convincingly this X-mas or if on the contrary, their calculations will cost them an early exit from this generation war.

 

 Your unrefutable truth is flawed based on history. 

October 2000 PS2 launches at $299

May 2002 PS2 price drops to $199. That is 18 months later.

May 2003 PS2 price drops to $179. That is 12 months later.

 

November 2005 360 launches at $299/$399

August 2007 360 prices drop to $279/$349. That is 22 months later.

September 2008 360 prices drop to $199/$299. That is 13 months later.

 

So it took the 360 35 months to drop as much as the PS2 dropped in 18 months.  Expect the 360 to drop another $50 when the PS3 drops in price late next year.  That is if MS feels threatened otherwise see at more modest $20 decrease.  Also expect to see HDD drive size increase again simply because the smaller drives become more costly to purchase.



Its libraries that sell systems not a single game.