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Sony just said today they will not be lowering their price any time soon. They only just started breaking even on the hardware and they don't want to go back to losing money on each PS3 sold. MS on the other hand has plenty of room to lower their price maybe even as soon as this holiday season. I wouldn't be surprised to see a Xbox 360 S with a 20gb harddrive or a 16gb USB drive for $199 and the rest of the older models getting additional price cuts to clear our space for the new models. If MS really wanted to move Kinect they'll bundle it at no additional charge or at least bundle it with a Xbox 360 S for $249. If they wanted to really push product out the door that is. I'm guess Kinect is going to be so hot this holiday that they'll be able to sell it at a premium price and family will get in line and empty their wallets for it. Of course we hardcore gamers will just keep playing hardcore games, but the casual market can't be ignored any more.