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snakenobi said:

its common sense a price drop is coming from both SONY and MS

MS will drop $50 for 4gb and $100 for all the other 3 sku's

Sony will drop $100 on all 3 of their SKU's

and both won't any lose money on hardware

 

and nintendo's already made a pricecut

without this each of the side's won't be competitive this holiday season

I disagree. If Sony does a $100 drop, they will be losing another ~$50 per console sold again, I'm afraid.

That combined with the massive company losses lately, I don't think they will stomach any more than a $50 price cut this year.

I agree with the rest, though I am not sure where the 4GB 360 will end up, price wise. It may get phased out and replaced with the 250GB at $199 or it may go down to the $99-129 range.  Plus, lets not forget that hard drive sizes are likely to get shifted around a bit as well.