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Has anyone thought they aren't worried BECAUSE they are prepared with there own price cut? To return to the face punching analogy, If I am expecting a punch in the face for ten months, then im not too worried. I plan to avoid it and minimize its impact. I think MS has done exactly that. Live is a huge stream of profit, and they are pouring more into it. An xbox live subscriber today gets far more than one did in 2005, and with Facebook/last fm on the way this will continue. They have padding in that amount of 8 million consoles, that alone will minimize the impact of what ever Sony can do.