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NightDragon83 said:
So far we're two years into the 8th gen, and already Nintendo and M$ have had to do some serious price cutting / bundling due to lagging sales and strong competition.

This is the most aggressive wave of price drops / deals I've seen for the first year all systems in a single gen were on the market since May 2002, when Sony and M$ slashed the prices of the PS2 and Xbox by $100 to $199, and Nintendo subsequently dropped the price of the GC $50 to $149.

A similar price war occurred in May of '96 (see a pattern here... E3 strikes again!) when SEGA slashed the Saturn's price tag in half from $399 to $199, and Sony slashed the PS1's price tag from $299 to $199 to match the announced launch price of the N64 which was released in September.

http://vgsales.wikia.com/wiki/Price_cuts

wut? PS2 came out in 2000. They didn't drop price in the first year. And it wasn't an "aggressive" move for it to cut the price 2 year later. It was just the right time, per se, to do it. Xbox and GCN, on the other hand. They dropped price within 6 months of release. Because they were getting obliterated by PS2.