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MS is prepping the stockholders for their games division losses for this quarter. They seek to blame the economy, rather than their pricecut strategy, even though they know exactly what they're doing.

The aggressive price cuts put MS at a fair loss on each unit sold. I hope no one seriously thinks that 360 CPUs and GPUs grow on trees.. the X360 isn't cheaper to manufacture than the Wii, yet it sells for less. A lot less.

MS is literally buying marketshare. They don't want their stockholders to freak out on them with the quarter's results -- they need a scapegoat for the losses, so the stockholders can "feel better"... even though, IMO, buying marketshare is exactly the right decision at this time. They are just worried that stockholders will not agree (and rightfully so -- the stockholders don't understand the market in detail).