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Well if the 360 becomes very cheap at least compared to the ps3 and starts getting some games than I think the 360 can become somewhat relevant. Is not like the PS3 is millions of consoles ahead of the 360 in Japan. If MS can get the new mobo and somehow get the price to half of the PS3 along with decent games on a regular basis it should do quite well. The key to Japan is games and if they can start pumping them out on a regular basis I think they will do well enough to keep trying. MS similar to SONY have on occasion ruled out price drops because without the games is somewhat pointless. The PS3 getting some games this holiday in the USA is why I think the $399 PS3 version is being introduced to spur sales not just because of the price drop but because there will be games to go along with it. I think it will be similar in Japan as MS drops the elite and a reduced price and drops the price of the rest of the sku's. Won't be long before we know how things will turn out.