Darth:
Microsofts real problem is not their performance relative to the PS3/Wii, their problems stem from the relative performance of the SKUs.
The Arcade is just too good, and the upgrade kit is too enticing. The Arcade is stealing sales of the Xbox 360 Premium and thats lowering total revenue/profitability. Their issue is making the Premium/Elite SKUs more relevant and therefore increase their revenue from hardware and ensure a greater adoption of SKUs with HDDs as their online revenue is a substantial part of their business.
Tease.







