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95%

If Microsoft wants to "take control" of the HD side of the American and European market they need a price cut because there are only so many people who are willing to spend $400 on a console. At the same time reducing the price of the system and certain accessories (*Cough* HD-DVD Player: $99 *Cough*) could presure Sony into a price cut they simply can not afford; most companies have trouble marketing their platform (or producing games for a platform) when they're bleeding money.