@ TheRealMafoo: "MS does not reduce the cost of the 360 because it does not cost that much less to make today than it did when they release it."
I'm willing to bet production costs per system have dropped more than you think. The problem is that MS set aside $1billion for RROD repairs. In other words, for every system MS has sold so far, $50 have been set aside to repair said systems. There goes your price cut Gebx.
My Top 5:
Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger
My 2 nex-gen systems: PS3 
and Wii 
Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.
