I don't think there's a whole lot MS can do, that will make a difference, if the PS3 drops to $299. There's a lot of stuff they can try, but if the PS3 drops to $299, it'll become a LOT more attractive to a LOT more people. MS won't be able to stop that from happening, no matter what they do.
They can make the X360 slightly more attractive, but... I hate to say it, but the HD console market may be getting saturated -- with X360s in particular. There are more potential PS3 customers, IMO, than X360 customers, due to the extra year of availablility (of the 360), and the extra utility of the PS3 to HDTV owners (BD). Nothing MS can do will change that, if the price of the PS3 comes down.







