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The final verdict is this; If Microsoft feels the need to lower the price on the 360 they will do so accordingly. Right now there is a 7 1/2 million console lead over Sony. I think its a little premature right now to even consider Sony taking back second place. Microsoft obviously has way more leverage to lower the price on the console seeing as it doesn't include blue-ray or WiFi. The Elite could easily be lowered to $249 without breaking a sweat. HDDs don't cost that much and with the arcade being priced at $199, a $249 Elite sounds about right. And if the future for the 360 is as doomed as you Sony fans say it is, then the $199 Elite wild card comes out and we know what happens when the $199 price point comes around. Apparently some people don't realize how much money Microsoft is worth. Microsoft doesn't like to fail. They aren't gonna let Sony take back the market just because they are afraid to lose a little money on hardware.