I don't know why people are worried about whether Microsoft or Sony is making $5 or losing $5 on each console manufactured right now, as though they didn't have other costs involved. With shipping and advertising costs, both are losing a good deal of money per unit. That's actually alright, though, as no one expects them to turn a profit right away. As long as sales are strong, the outlook is good.
Personally, if turnover is good until the end of the year, I don't see Microsoft going with a price cut yet. I think it's more likely that they'll go with their traditional holiday instant rebates program. A price cut would just keep them in the red that much longer. I can't see them being fine with that unless sales are sluggish.
Sony will go even longer, especially if they hold the most market-share.
Part of me thinks the last-gen dog-fighting is going to be less severe this gen, with both Sony and Microsoft trying harder to turn a profit from their gaming divisions.
