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Magnific0 said:

^It's also pretty obvious they can take the hammering as long as they continue selling to meet their projections. The competition is selling more, but they estimated they'll take the heat for now selling STEADY, and then probably let all hell loose next year. Like it or not, Microsoft just can't afford another price cut in less than 6 months, and won't do it. Slashing another $50 off the current price won't work miracles either, right now the 360 is cheaper than the Wii, so why isn't it selling closer to Wii's numbers? You should compare 360 to Wii and PS2, not to an elite $400+ product. If MS can't challenge Wii this holiday season, and just be content to beat a much more expensive product by, let say 2:1 in USA, and cut close to even in Europe, I don't see where's the victory, I will just see MS saved the 360 from further embarrassment this year, if anything.

 

From my understanding, all x360 models still make a profit and the Pro/Elite make a decent profit.  I don't see why M$ couldn't drop the price if the need arrives.  Besides I don't think Sony has any intentions on dropping their price until late next year anyways.

It would be very easy for M$ to add a AAA first party game like Halo 3 to its $199 console to help rocket sales.   I wonder if they would be able to compete with the wii if this happend? 

 

I am expecting the X360 to do 3:1 sales over PS3 in NA Black Friday 'till Dec 25.



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