$99 for an X-Box 360.... Smart move? Or an act of desperation?

[whatever]

Steroid said:

ZorroX said:
Desperation with 9 mln. lead in NA? NO.

But 99$ is really cheap.
This shows, that Microsoft is ready to secure NA at any cost.

It's more important then people realise that 360 not lose marketshare to the PS3. Every 360 owner or potential 360 owner that goes to PS3 is the possibility of an XBL subscription that gets cancelled or never gets created. For me it's a no brainer to not be a goldmember, why the hell am I gonna pay a fee to play COD online when I can do   it for free? Sweet sweet free. I love free.

Well, it depends on how much money you lose doing it.  If it becomes cheaper to make live free vs. major losses on hardware then it doesn't make sense. 

Also, you'll get to the point where it will no longer be an either/or proposition.  If the arcade is cheap enough (and I think a $99 arcade would qualify), then people would be able to get the $99 arcade and the $299 PS3, which then still presents the same problem you mentioned above.