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Can people explain to me why they think MS would go aggressive on price front? They will not catch up to the Wii (and they know it) and they have a good year lead to the PS3 if the worst case happens. They have plenty of third party support and really really stellar software sales! Why should they be aggressive? To tell Sony a lesson? Well thats the MS of 2006 not 2008.

May I remind everybody they just put an offer to buy Yahoo for 45 billion? That is some serios cash. Cash that even MS does not have! If they get Yahoo it will be the first time they will lend money. Call me crazy but that shows some serious things:

MS priority shifted:

They want to fight Google, Apple, Linux more than Sony. And thats because they are all attacking MS at its core: The OS and Office business! The move to buy Yahoo is expensive and totally risky. That shows MS is desperate at that front. 

Do you really think MS will take a fight on Sony in that environment? I doubt it. They will cash in on their gaming devision for a change. They will drop the price of their high profile SKU (Premium) only if they are forced to. 45 billion will seriosly hurt their cash flow and force their hands. 

I say Sony will drop the price first, MS will just react. You can quote me on that!