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starcraft said:

We now know that Microsoft did extremely well in 2007, however they could have done better. It's fair to expect that the low-end 360 will start getting down towards mass-market prices towards the end of 2008, so now its time to call price drops.

 

When will Microsoft drop the price? $50 per 360

How much will the drop be for each SKU? $50 each sku, making the 360 Arcade at $229

Will Sony follow with the same price drop for the PS3? Not immediately, but when the gap between the 360 hits 9M - and again, Sony will drop the price, and again, lose even more loot. The Blu Ray drive is a mixed blessing - it gives Sony a HD player in their console, but it prohibits them from dropping it below the 360

Does anyone have an educated guess as too how much Microsoft are clearing on each 360 sold? I dunno - but they've been making the 360 for over 2 years, and I can bet, even with the revisions, they are profitable ...