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Dodece said:
Sure Microsoft would like to generate a profit this fiscal year. However this is Microsoft, and they have to be happy watching Sony chewing off its own legs trying to win this particular race. Thats a strategic victory even if it is a hollow one. Having a competitor destroy itself is always a good result.

I quite agree with this, and I think the only reason MS didn't do a price cut last year was because the 360 was already miles cheaper than the PS3.

With the numbers coming in for hardware sales after Halo 3, I'm rethinking my claim that MS will go with bundles instead of another price cut. I was expecting the software lineup to really boost 360, and so far the boost is not that big.