I would say if Sony trully beleives that in the 10 year life cycle they will obtain the lead again, I would not cut the price until my biggest guns are about to release. Meaning sometime in 2008 when MGS or FFXIII finalizes. That gives them plenty of time to continue to reduce manufactering costs to ensure a price cut won't cripple SCE for this entire gen as it did for MS's Xbox. However, the 360 has been out longer and is probably already making a profit or really close to it. That coupled with the 360's healthy attach rate means that they are probably ready to drop the price. When does Halo3 release? If that happens, as I think it will, Sony and Nintendo will be forced to match. The only company at this time that this will hurt will be Sony as they are not really ready to lose an additional $50 or $100 per console. So, I think there are two possibilities. 1. MS beleives they are selling at a decent rate and leave prices alone, which will let Sony keep the same price point until MGS or FF release. 2. MS decides that it is time and wants to stick it to Sony. Then price reduction in September.
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