This is not a video game sprint, it's a video game war. All three consoles are doing quite fine at their current price points, and as such I don't think any of them needs to take any drastic pricing action. And there won't be any price drops tomorrow. Why not:
- MS is experiencing a shortage of key skus in the US. It's not a good idea to drop the price on a console you can't easily find on store shelves.
- Sony is prob. still losing money on the PS3 at $400. And they'll prob. get a nice lift over the next few weeks with HD DVD's death.
- Nintendo can't keep up with Wii demand.
Many have suggested that price drops will come around the launch of GTA IV. I disagree with that as well. The game will sell consoles. So unless MS blinks, I wouldn't expect anyone to drop their prices then either.
Edit: To answer the question, MS is in a better position to drop the price of the 360 since they aren't taking a loss at the current prices.
Numbers are like people. Torture them enough and you can get them to say anything you want.
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