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I don't see the word "plummet" in his statement...

The system is selling well now. It will sell very will without a price cut due to halo reach, COD black ops and Kinect crowd.

So price cut may be something they use in early 2011. They can sell a couple million consoles more if they cut price, but they have a perfectly sustainable and profitable business with the 360, they don't need to get more units out the door that they are alredy doing.