I would hope Microsoft has learned the value of being priced competitively. When their was a big delta between the PS3 and 360, the PS3 was getting crushed. They are now price equivalent and the PS3 is doing much better. Certainly games had something to do with it, but price is most certainly the biggest factor.
I own a 360 and really enjoy it. By next holiday, if I was having to make my hardware choice then (between a 360 and PS3), I'd probably lean toward the PS3 because of the built-in Blu Ray player. The Blu-Ray does add value to the equation...
As much as I want to see the 360 do well, if they try to hold the line on current pricing, I suspect that the PS3 will begin to make major progress next year. Honestly, I think MS made a mistake only cutting $50 off the price of the 360 late this year. A $100 cut would have put some serious hurt on Sony over the holidays in both the U.S. and in Europe...
Bottom line, I think MS needs to look for a $199 Arcade, 279 or so Premium, and $349 Elite. That returns price leadership to the platform and makes the Blu-Ray a premium again for the average user. I doubt they have the margin at this point to achieve it, however... We'll see, I guess, but it would be really smart to make the move right before GTAIV...
I hate trolls.
Systems I currently own: 360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong. Yes, Pong.
