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^So you are saying that Microsoft won't cut the price because cutting the price would be bad for them? That's odd..... seems like a winning move since it will still be profitable or near breaking even after the price cut.

And I don't know why you think "Sony's proven history in cost reduction" has any merit. All components are manufactured and over time EVERY manufacturer reduces the cost of production, especially on CPUs/GPUs which, by the way, are not made by Sony or MS, so really your argument that Sony will be able to reduce the production costs based on their history is kind of silly considering their very limited control over the situation.