I would think that MS would drop the price of the Pro to $249, and the Arcade to $179 or $169.
The key is keeping that Pro unit below the PS3 by a decent margin. It's $100 now, but a reduction to a $50 margin would swing sales back to parity, I think. However, MS would suffer far less with a $50 Pro drop, than a PS3 $100 drop...Which may allow MS to maneuver in other ways. Sony is in a very bad position. They aren't profitable with the PS3, and it's sales are dwindling. All this is while the 360 and Wii are doing great, and have more room to initiate price drops, or change their strategies.
Back from the dead, I'm afraid.







