@Seiyouhen,
Your second sentence in the paragraph.
"In Q4 2007 when the PS3 dropped its price to $399.99...."
Why did you say "In Q4 2007, when the PS3 had a massive price drop to $399.99..."
An $80 price drop is not huge. Yes the $20 price drop the previous year was ridiculously low for a first price drop. I believe if the RRoD problem had not occurred MS was planning on dropping $100 in 2007. What made it possible for MS to barely move on price was the dismal performance of the PS3 in 2007.
2002 after the PS2 after 1.5 years on the market dropped $100 to $199.99. At the same time MS dropped the Xbox to $199.99 from $299.99 after being on the market 6 months.
Its libraries that sell systems not a single game.







