Well the price drop is both good and bad. Good in that now more people can justify paying for one, or who were just on the borderline of buying one anyway to get out there when the price drops and save themselves a few bucks now. Bad, that it might 'not be enough' and yet still, it seems like they might be trying to push it because they know they are behind. Your system can only last for ten years if it's got plenty of support.
And although I'd agree with the whole MS not being in a good position to match the price drop game at this point, it is Microsoft, and they've proven time and time again that money doesn't really seem to matter much to their small nation of Cashola that occupies a bank the size of Rhode Island. If manufacturing prices for the PS3's stuff is coming down, I'm sure the 360's is as well.
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