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Easy. Microsoft has dropped the price $50 in their main market (US), and have seen huge gains in Europe with their huge price drop. Microsoft wants to be profitable, and they've seen the example the PS2 has set since it's had a good bit of 1st and 3rd party support well after the next-gen version came out.

MS could keep the 360 around (ie, being manufactured) until late 2012, and wind up making a great profit off of the machine.



Back from the dead, I'm afraid.