It will be interesting to see how this plays out. Sony has bet the bank on this holiday season. If this doesn't propel them past the 360 in holiday sales, I think they need to consider it a failure because come spring 2008, MS will probably be pushing another price cut, driving up sales again. They should definitely have wiggle room for another price cut and if they don't, they need to really evaluate their manufacturing process because one $50 price cut in 30 months just ain't gonna cut it in this market.
At this point, I have to believe that MS is making a tidy profit on 360 hardware.

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