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Gazz said:
The effects of a pricedrop in Europe were minimal. In fact, the 360 recently got outsold by the PS3. Also, MS may have enough money, but its shareholders will not agree on losing more money on the 360 after all the losses so far.

Also, making a console too cheap, may also give the wrong impression to customers. It already has the shady RROD image which its thanks completely to itself and by making it dirt cheap, MS might get the unwanted side effect of getting a cheap image. The price cut did do wonders for piracy in Europe though. Lots of kids with hardly any money now bought it and enjoy getting warez for them.

 

MS shareholders are traditionally focused on share growth, not dividends (they didn't start getting dividends until fairly recently), so this assertion is unlikely.