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gamingdevil said:

Third, what makes you think that Sony can drop their PS3 price THAT fast? I mean, Microsoft hasn't even lowered their price by 100$ and the 360 is in the market for more than 2 years.

Don't you think they'd like to make profit off of their console sales sometime?

Same reason that MS cut the price of the XBox after a few months on the market - they are behind and can't afford to be left in the dust by their competitors.

Remember that MS didn't drop the price of the 360 in 2006 because the PS3 was so overpriced that it wasn't seen as necessary.

 In 2007, the couldn't have a large drop because they had taken a big hit with the RROD warrantee.

Now, there should be nothing to prevent MS from having a steep price drop for all it's consoles ($70-100), just as the PS2 was able to do in 2002.