I'm starting to think that MS might be completely disregarding the Wii, which is a mistake, but probably not for the reason most of you think it is.
By only paying attention to Sony, MS is keeping the 360 price artificially high because the PS3 isn't moving units. They still have the price advantage so why should they cut their profits?
One problem with that thinking: The PS3 is going to build some serious steam in 2008. By dropping the price and getting people to adopt into the 360 family in 2007, MS essentially blocks a PS3 sale in 2008. That means they can continue to gain ground on Sony WW until at least holiday season next year, making any late-generation push by Sony essentially futile, or at least hold them off enough until Xbox 3 is released in 2011. They basically guarantee themselves a strong second place finish (and possibly even a profitable generation for once) and an open road to continue growth into generation eight.
Nintendo, while also a gaming console, only mildly overlaps with MS and their grand strategy. Nintendo is also completely untouchable this generation but MS needs to at least hang in there and waiting for Sony to make the first move is folly on their part.
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