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People underestimated how determined Microsoft was to keep their vision. Microsoft has a series of goals and they knew the steps they need to take to reach them so they keep their vision focused and simply modify it as needed. Personally I doubt we'd be having this discussion is Microsoft hadn't f'ed up with the hardware... this price cut would have happened last year or at worse earlier this year. The effects would have been much more wide spread and instead of the paltry lead for the year they will have they would have likely done a couple million more... not to mention the hurting they took on their reputation that allowed Sony to kind of slip back into the hearts of gamers after they totally acted like asses leading up to the release of the PS3. I think every PSN user owes Microsoft a thank you as well... if it wasn't for Live you wouldn't be playing online the same way...