Some of you seem to forget that Sony is losing around $50 a pop now. Add a $100 price tag to that and you get $150 loss, even if they can cut the price it will still be around $100. So I am certain M$ could match that loss rather easily, esp.. considering M$ are near breaking even or making money on all their sku's.
M$ is trying to finish off Sony at this point, why battle them next gen if they can cause them to go under this gen? So M$ doesn't mind losing a little money as long as it helps them out in a few years.
Even if Sony does survive this gen, the more people M$ can get onto live the better for them next gen. Why would anyone want to leave their friends list when everyone you play with daily is on it?
"If you've got them by the balls their hearts and minds will follow."
Quote by- The Imortal John Wayne, the original BADASS!
