I think they need to. So far they have done quite a bit better than the last generation, but there are a lot of underlying factors involved that can't be counted to build further in the next gen. First, we haven't seen the 360 pass the XBox worldwide yet, and it could start to lag once the existing fans are on board. We also haven't seen the PS3 come down below $400, and we simply don't know how competitive MS is without a serious price advantage. Heck, they were getting beat solidly until their last price cut.
Also, they got the 1 year head-start this time, and we don't know how influential that was. It may, for all we know, be the sole reason why they could outdo their last performance. Considering the fact that they've only been met with moderate success and undoubtedly want more. Launching early helped this time, so doing it again should be in their better interest.
So yeah, MS needs to launch early.
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