Microsoft is doing what both Sony and Nintendo are probably wishing they had done. Maintaining current price points in part has allowed Microsoft to fuel a massive expansion in its own internal development capacity. By as much as double, or even triple what it had at the beginning of the previous generation. While at the same time allowing Microsoft to extend the development cycles for their games. Which will allow Microsoft to produce more, and release it in a fashion of their own choosing.
I say the others probably wish they had done the same, because the reason usually given for decreasing the retail price of a console. Is that it increases the consoles install base. Which usually increases software sales by such an amount as to usually offset all the lost profit potential plus some. If we believe this sites sales data, and the pattern of small third party developers that are going belly up. Game sales is probably the worst place for any Manufacturer to be trying to make most of its profit right now.
I have to wonder if this too was part of Microsoft's pricing strategy. Specifically that they predicted that this downturn in the market was going to happen. When you think about it their exposure has been surprisingly small. They as the original poster pointed out are probably making a real killing on their hardware. They aren't releasing a lot of software, but it seems to be the right software for this market, and the bulk of the money seems to be getting pushed forward into their next generation of consoles. Rather then their current one.
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