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History has shown that the 3rd year of the console is its best. The 360 is finishing its 3rd year and the PS3 is finishing its 2nd.

As much as you would like to think that M$ can cut the price again, they can't. There lack of quality is still costing them to much money for them to cut prices any time soon.
I expect M$ to add new SKU's and rely on there already known '09 game lineup, but no price cut.