A relatively cheap PS3 Slim is inbound. Let's talk Microsoft's response.

[starcraft]

CrazyHorse said:

starcraft said:

As of September 1, Microsoft will be offering an Elite console (which is becoming the pro really) with an HDD exactly the same size as it's main competitor, virtually identical processing power, but missing a Blu-Ray drive.

As of that moment, Microsoft's price point is quite likely to become untenable.  Whilst it does have a stronger games library (and probably a stronger line-up coming up as well), the Playstation retains a formidable brand-recognition advantage.

So people, where will Microsoft go from here?

That's very much your opinion.

OT: Microsoft will still be able to rely on their strong game line up and momentum (i.e. people will buy one as thier friends have one) to carry sales for some time but they are never going to be able to match the upcoming PS3 sales with the current 360 price. IMO of course.

Whilst future line-up is very much my own opinion, existing library strength is very much the opinion of the broader gaming press and the reviews it produces.