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I think MS will play it cool like with sonys last (kinda) pricedrop, first they will wait and see how the 40Gig flyes and how the new bundles are doing, if the 40Gig really takes off MS can counter any time but I think they will wait till spring... maybe GTA4 time to earn as much money as possible... MS knows they will winn any price battle, the question is if they want to.