of course Microsoft will say this, it's not like we expected them to say "We are currently evaluating what value proposition our console brings when at the same price the competition clearly has more value since they have a blu-ray playback built in"
But they should be worried, it's not just the phat PS3 getting a price cut to $299, because if it was only that then they would be fair a little better, but they should be worried because it's a SLIM PS3, and this means they are refreshing the look of the PS3 to reinvigorate sales, and we've see in the past how well slim versions do, with the PSP slim and DS light all getting a boost in sales and an increased average sale once the boost averages out...not only this but the slimmer version also allows them save money on practically all aspects, from manufacturing to shipping, end result = profit.
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