Squilliam on 24 June 2008
Microsoft wouldn't drop the price that agressively unless they can expect several of the following.
1. A high uptake of Xboxlive gold
2. A wider variety of games to take advantage of the drop.
3. A competitive advantage that they feel they can leverage over both the PS3 and the Wii. This leads back to games for the most part.
4. That the end result will payoff in a profit long term. This leads back to A/B.
A price cut of that nature would crush the PS3 and they would probably start going toe to toe with Nintendo. Of course Nintendo will make 10x-100x-infinity more profit than Microsoft, so don't worry guys.
Tease.
