MS should, and probably is (or at least will be) cutting the Core from their line-up. The reason they haven't officially done it yet is because they don't want to appear to be doing the same thing they recently criticized Sony for in terms of replacing SKUs instead of making real price cuts. They will likely phase it out in their next price drop, likely citing the fact taht they can't reduce costs on it as easily (which is true). But that doesn't matter, since they can easily drop the price of the Premium another $100 and put the better unit into the Wiis price range.
And no, Sony's situation isn't dire and they don't have lack of profitable divisions even if they have plenty that are "struggling". The company as a whole is profiting as we speak, despite the massive losses caused by the PS3. The PS3 can never lose them that much money again, because they don't have any need to launch it again.
But hey, why am I arguing with someone who thinks the PS3 costs $1000 in Europe or that the machine costs anywhere near that to make when it cost $840 to build one a year ago? Or someone that doesn't realize that the Playstation brandname is still the most powerful in console gaming and that MS, and MS alone, has to be cutthroat to avoid being pushed out of the market entirely. I mean, if someone can't figure out that the PS3 sells as well as or better than the 360 at $100 more, there's not much else I can say. Except, you know, if MS ever let Sony have the same price as them the war between those two would be as over as it was the day the Xbox launched last generation.
You do not have the right to never be offended.
