Why would MS want to drop their price. If they just Drop the price to counter Sonys price cut it may look bad for them when they have to raise the price on the new xbox bundled with natal that is released in the next 6 to 12 months. I think they will try and hover around their current pricepoint as long as possible or as close to the Natal launch as possible.
I believe they are dropping the Pro model to set the stage for a 3 sku setup (like they have now). Acrade, Elite and Natal model. Eventually the price points will probably be around $149 arcade, $249 Elite and $299 Natal.
MS does not believe their 8mil lead will be wiped out over one holiday seaseon and are setting up next year as a huge run.
Also expect to see HD price around $99 and Natal around $99 at this time. (maybe a bit more or less depending) The pricing would fit this making someone buying an elite or arcade pay $349 for a fully equiped box while the value would be buying the natal version and saving an extra $50 by getting it all up front.
Thats my take on it anyways
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