I don't think the market for a $500 video game system is all that much bigger than the market for a $600 video game system. It should increase sales I would think but not enough to really make a difference.
The bigger question is whether MS reacts. I have no clue what they will do but seeing as they're paying $1.15 billion to fix all the broken 360's out there it's going to be hard to lower the price unless they are simply giving up all hope of ever making a profit on the xbox venture.







