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nightsurge said:

I wonder if this means a huge 2011 price cut?

I mean the profit margins on the current Elite 360 (before going to $250 clearance) were already massive.  Now with the redesign selling at the same price it has to be even higher!

It seems likely that MS will ride out their momentum from Kinect and the redesign for the remainder of this year and be ready for a huge price cut to keep momentum going next year!  Imagine a $200 Kinect Arcade bundle next year, $300 Kinect 250GB (maybe 320 or 500GB by then) 360, and $99 Kinect standalone!  Standalone 360 S would be at least $149 and $249 by then if not cheaper as well.

First no price cuts in almost 3 years and then all of a sudden a $100 drop for each bundle? No way. There's no logic in that.

Yes, Kinect is now officially doomed. They needed to gain a big momentum right from the start. Now they destroyed everything. Didn't they learn from Nintendo that an early cheap price pays off in attracting casuals?