More assets do no mean MS has a blank check to dump as many resources as possible on a commercially non-viable division. This is not to say that the game division does not have potential for more future profits. It is profitable, but not if they recklessly dump resources while simultaneously cutting revenues. MS did not become the company it is today with such business practices.
The only way to realistically drop prices without losing additional revenues relative to production expenditures is by cutting production costs. Something Sony has been doing constantly since the first revision of the PS1. Also something MS has been doing since the Zephyr. Cost savings on the Falcon essentially went towards the 3 year repair plan for the RROD. Tiny MSRP cut by comparison. The Jasper will allow for lower production costs which will likely be paired with lower MSRPs.
MS could definitely streamline their product line though. They need to cut the 20GB drive already and lower the price of the 120GB which would make the Arcade more viable as a potential upgrade path model. That would mean a reduction in the price of the Elite, but... as many are already aware, it already looks due for another revision/update, most likely paired with another minor price cut.
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