Microsoft has no good choices here. They're caught between the Beast of BluRay and the Wii's blue ocean sea, and they have noone to blame but themselves. A price cut won't give the 360 next-gen media capacity or a replaceable hard drive, and won't repair the breach of trust that RRoD caused with East Asian and EU consumers.
If Microsoft cuts its price, Sony can easily respond with its own $50/50EUR price cut, right in sync with GTA. Sony's cost reduction machine is on maximum overdrive, demand for the more expensive 80GB models is strong, the Beast of BluRay reigns supreme over the mediascape, and they're making ridiculous amounts of money on their EU sales.







