M$ simply needs a major price cut. If they are profitable at the current price levels, there is no reason they shouldn't cut $100 across all models. They came into this expecting to lose money on console sales to get market share. It seems they reversed course at some point, which is a bad idea.
A $250 premium would kill the PS3, at least in NA and Europe. This would then cause Nintendo to drop the Wii price also, further hurting PS3 sales.







