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whatever said:
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.

 I second that. But I don't think there's anything to worry about, Microsoft are not stupid, they have acces to sales numbers too, and they know their company, strategy and ecomnomics better than anyone else. They will surely react. 



 2008 Predictions:


Wii: 44 Million
Xbox360: 25 Million
PS3: 22 Million

DS: 90 Million
PSP: 37 Million