Microsoft has lost its window of opportunity. A very strong price cut at the beginning of the last holiday season -- arcade to the same cost of the Wii, premium at $299 with a pack-in or three would have seriously hurt PS3 holiday sales and perhaps left the PS3 reeling so hard that it would have never reached a point of serious contention for first place. HD-DVD was still in the game and blu-ray was an unknown. At that time, a strong price cut would most likely have had devastating effects. MS opted to make a token cut and rely on bundles instead. It is too late, now, in my opinion as the PS3 has enough solid games to survive regardless of what MS does. MS made this choice, of course, because their gaming division has lost so much money and they want to return to profitability at some point.
At this point, cutting the price to a point of losing money would just be stupid. It won't make nearly the same impact it would have last holiday and MS would be losing money and not slowing the PS3. MS may well sell a lot more consoles, but they can't stop the PS3 at this point... They would be better served to keep the cost reasonable and try to remain profitable so they can enter the next generation without losing billions more...
I hate trolls.
Systems I currently own: 360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong. Yes, Pong.
