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I think an FYI is in order here too. With the generation expected to last longer than the previous one Microsoft can afford to subsidise the consoles being sold now as if they were launch units. Just because the price is OMG $200 and O dear $300 doesn't mean than they cannot slash the cost of their console still further. They make a hell of a lot of money on Xbox Live. They stated that they broke even on the Arcade with accessories and from all accounts the Premium and Elite consoles are profitable from the moment they leave the store. They have every incentive to increase sales still further and they have the ability to match any price cut Sony makes on the PS3 they could possibly even match dollar for dollar.



Tease.