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For sure 360 is gonna price drop, probably anouncing it at E3.

That being said I'm not sure how much it will affect sales overall. I mean don't get me wrong it will lefit them somewhat and certainly help the console but I really think we're starting hit saturation point with the current generation of consoles especially in the US.

The real answer for MS is the impending launch of the nextbox. Though a price drop will certainly help.