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gergroy said:

yeah, but I think microsoft will just eat the cost of price cuts in the first few years.  This gen is slightly different in that all the hardware isn't starting out as loss leading, so there is room to just cut the price and lose a little.  I think new models that may cut some features be more of a mid gen thing.  We will see though...

Not that they can't afford it, but the problem with this is that it doesn't actually do all that much to strengthen the brand or create new revenue streams. It only takes bricks out of the jenga tower.