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Lets see:

  • Console is profitable, can price cut if they so choose.
  • They haven't cut more than 33% off the price AFAIK on the lower end.
  • They have a slimline console coming *based off 45nm combined GPU/CPU*
  • They have an epic Halo coming this year, Halo years are ALWAYS good years.
  • They have Natal, which caused a bump in hardware sales the week it was announced at E3.
  • They have a 5M lead to waste and time their moves how they want.

So what will likely they do?

  • Probably no price cuts in the first half of the year. Second half is a possibility although they could end up just bundling Natal. Doing both would be an epic move.
  • Epic advertisement campaign to coincide with Halo + Natal.
  • Try to repeat 2008 im guessing with a strong finish.
  • Slim console, loses all prior reputation for unreliability and adds features like wireless which they cannot add to the present design due to interference with 2.4Ghz controllers and case design.
  • Add a reasonably quantity of flash to the Arcade design to make it viable, this means they can drop the price delta between Elite and Arcade to between $50 and $80 if they so chose. I figure 8-16GB would do for this. This makes predicting the end price hard. 


Do you know what its like to live on the far side of Uranus?