When and how much do you guys think the next round of price cuts will be? Its already clear that there is some pricing pressure on Microsoft to drop the Xbox 360 price in springtime to stay competitive. Its obviously selling well because of the good slate of games and some pricing edge against the PS3 and Wii, as well as some momentum, but its definitely slowing down in Europe big time and this could be a slow spring in America as well if Microsoft doesn't stay active with price cuts.
When spring rolls around Microsoft will finally be selling entirely the new less RROD-prone Xbox's, which are also cheaper so they should still be making a profit. I think they will do the following this spring.
Phase out the Xbox 360 Arcade bundle.
Xbox 360 Pro $350 >> $250
Xbox 360 Elite $450 >> $300
Pretty drastic cuts, but those wouuld really spur some sales. I think Nintendo would hold strong on pricing if sales are still going along well enough, maybe drop the Wii to $199 eventually. Sony would hold strong.
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