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Ever wondered why MS suddenly dropped the price? Well here is my theory.

1) First of all, they have no triple A titles (except GTA IV) or exclusives coming from their own company or from a thirdparty within the coming months. Nintendo has got Mario kart and Super Smash Brothers Brawl (Fire Emblem too, but I wonder if it's triple A). Sony gets GT 5: Prologue and Metal Gear Solid 4. And as a bonus they will get GTA IV, which MS also gets.

2) MS has lost the Blu Ray vs HD-DVD war. People who were waiting for the outcome on this can now choose one platform: Blu Ray. PS3 is the cheapest Blu Ray player around, so people will pick up the PS3.

3) Considering the sales in Europe, it was the only thing they could do to stop PS3. It will bring a salesboost for sure, but I think it will only be temporarily. But everyone can only guess, and so do I.