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There doesn't look to be any incentive for Microsoft to do so. They have already given a price cut, and they have released a bundle. That should easily fend off Sony this holiday season. Once again Sony is spiking which is not a long term indicator of success. This has happened six times this year with the same end result the console shoots back down to mediocrity after a few weeks. Microsoft has to know this, and probably expects it. So they are not going to panic and slash prices. They will want to save their next price cut for when the market is tighter early next year.