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dreamcast210 said:

Wow! And to think, there hasn't been any real price drop on the 360 in a couple of years. Microsoft has certainly played its cards right this year. This console generation is changing all the traditional aspects of a console cycle.

This.  Imagine the amount of price cut power they have now, too.  They could easily shave $100 off of the 360 standalone and $50 off the Kinect stand alone at any time in the next year.  If Nintendo or Sony try to make price reductions there is no way they can compete with MS next year.