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- I doubt that E3 will feature a price cut. We have just seen the announcement of "TV Originals", and my opinion is that MS is continuing with their original message: "Value". They have repeated many times that XO's value justifies the price, and it seems that they are more willing to spend money on content, than to "spend money" on price reductions.

- Outside TV programming, in order to remain competitive, MS really needs to show its potential customers some new, interesting, powerhouse games to draw them in.

- I believe MS has learned a lot from March and the Titanfall "loss". They have learned that Titanfall was indeed a system seller, but unfortunately it sold systems in the months preceding the actual game. MS's two biggest IPs and system-sellers are Halo and Gears. However, relying on those games to conjure up sales is probably pointless. It is "preaching to the converted", Majority of people who are interested in those 2 (3 including TF) franchises have either already bought the console, or will do so in the upcoming months.

- Those new IPs are certainly not "Sunset Overdrive", which I believe will have a strong and dedicated fan-base, but I cannot imagine its appeal to a broader audience, and I cannot imagine it being a system-selling game.
- I have serious doubts about "Quantum Break". So far, all that we could see was some fantastic graphics and Remedy's trademark bullet-time. I believe that this game has a huge potential, but that it will get bogged down due to TV -show integration, that it will lose a great deal of its appeal due to its (my presumption) episodic content. because the TV show would need to be a success in itself, a success of "The Walking Dead" or at least "Breaking Bad" proportions to ensure continuous quality input. Without putting down the game itself (which looks like it might be great), I'm afraid its future outlook will match Defiance.

- Back to price cut. Price is not the most hindering factor. Heck, PS3 has been more expensive throughout the generation and still came out ahead. This is particularly true to non-English speaking territories, in which PS4 will outsell X1 regardless of the price. In Croatia, a country with low-to-medium income consumers, PS3 outsold X360 by an enormous ratio, even though it was constantly at least 100 Euro more expensive. and even though all X360s were modded and pirate-ready. People were willing to pay more and then buy PS3 games than to pay less and buy blank DVDs.
So, basically, EU price cut should come last. MS will sell as much as it would have with a higher price point, and only sell more consoles at the tail-end of the generation.

So, TL;DR - MS will not cut price, it will invest in content and try to gain customers that way.