It's difficult because last gen MS were able to always stay 1 step ahead of Sony in terms of price, and Sony couldn't just cut the price. This lost them a lot of sales, but made MS lots of money from gold.
I was thinking that either would be slow to reduce price, but you know what, longer term I think they both now want this PS+/Gold user, it makes them lots of money, and the problem for MS is that a lot of 360 users are moving over to Sony and paying for PS+, which in the long run is going to damage the profit of the console. So in term trying to shift consoles cheaper even at a loss might still be the best route for them.
The problem for MS is by dropping Kinect, they have lost one of their key features that they made a big fuss about. They drop it, not sure it will help that much.
One other thing to consider they are panicking right now because they had a 20m+ difference to Sony in the USA, that will make a massive difference to their bottom line if they lose that advantage this time.
Making an indie game : Dead of Day!
