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Avinash_Tyagi said:
^The arcade is the less desired version of the 360, but even arcade can sell at $99, as we saw, the elite also needs to come down in price as well.

Actually they've been in the black on the 360 for a little bit now, also PS3 is still sold at a loss, unlike the 360, so MS can drop, Sony will lose even more money if they drop, and between the two, MS can absorb it much easier, in fact I wouldn't be surprised if MS did price cut a lot and caused Sony to bleed money, as MS can afford it, Sony on the other hand is in financial difficulty and losing too much money could lead them to disaster.

Price cutting their console will not raise sale enough to justify it so they will prolly not do it. If they do, sony will not have to price cut to keep selling like they do, so they will not bleed money. Maybe in your dreams but not in real life :P.