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Tbh, I do not expect Sony to make the first move. They would really surprise me if they did. I think MS has more space to let the price of the 360 drop a bit. Sony is still compensating its previous losses.

Sure, I do hope for a pricedrop of 50 euro by MS and in a response to that Sony will drop with 100 euro, but I think we're all doing wishfull thinking for the moment.