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JayWood2010 said:

They started offereing the 99$ subscription model not long ago. As long as they continue making money there is no need in a drop.  Although it would be nice to see a drop

This.

Microsoft made a stealth price drop, which no one really takes into account.

Both the 250GB Xbox 360 and the 4GB Xbox 360 w/ Kinect cost only $99, if you agree to two years of Xbox LIVE @ $15.00 paid monthly.

By offering a subsidized product vs. a direct price cut, Microsoft essentially avoids having to cut prices.