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Hmmmm.

Well Sony and Nintendo have had alot of price cuts without Microsoft budging.

Sony has had 3 between Microsofts last one and now. Nintendo 2. The 360 has stayed competitive without the need to follow suit.

However £199 PS3 will be hard to beat in EU.

Forza 4 has had a massive increase in attention in EU largely due to Top Gear being big in Germany, France, Spain and Of course the UK. Also the fact that GT5 disappointed across EU reviewers and forums. So Forza 4 does have a chance to sell some consoles this time.

Forza 4 will be appearing on Top Gear itself around its release. Free advertising to over 39 million viewers World Wide. Not bad.

Can they do it without a price cut?

Only if Forza 4 helps in EU where Sim Racers are a strong seller.

And Kinect 2nd wave helps sales to.

By the By. When is Microsoft gonna do another price drop. It's been over 2 years.