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Microsoft will probably counter at their press conference.

But, they should wait until after Halo 3: ODST.

I think price cuts now are too early... Look at when 360 cut just before Madden a couple years ago. Sony caught up and took the lead when Sony cut in November the same year. Microsoft should just sit and watch the price cut/slim marketing fizzle out a bit... Then, do something in the mid/late-October timeframe.