I agree that the 360 has a much brighter future than the original Xbox if Microsoft plays its cards even reasonably well. The sales have been slowing lately, but, as you've said, a price drop should stimulate sales again. Remember, though, that MS was giving rebates and bundles at various points, especially last holiday season. This is tantamount to a timed price cut.
The $200 price point is the key. The 360 is already available for $300.
I don't think Microsoft wanted to be in the same ballpark as the original Xbox with sales. How they play their cards from here on out is critical, and I think it would be unfair to suggest the 360 doesn't have much better legs than the original Xbox.







