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Makes sense to me. I don't see MS dropping the price of the arcade so really this would be their only other option in trying to counter any cut made by Sony. IMO this won't create anywhere near as big a percentage increase in 360 sales as a price cut will in PS3 sales (depending on the size of the PS3 price cut obviously) but it will soften the blow. I'm hoping it's true, if the Elite comes down to the Pro price I will definitely be picking one up in the new year.