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durtysouthhustlah said:
All MS has to do is cut the Arcade in the U.S. to $179 - and the Elite down to $249. Bundle it with a couple games and they are set. MS isn't worried much - they aren't losing money like Sony is with this price count. Folks are excited and overjoyed that Sony is releasing a slim, cheaper version of the PS3, but folks need to come back to earth and realize Sony is so far in the red, and this move is gonna take a while for them to dig out of the hole they made for themselves.

I think this is their best course of action.