How will Sony respond if the Xbox 360 sees an $100 price cut this summer?

[kn]

There is a rumor floating around that EGM is going to report that the XBOX 360 will be receiving substantial price cut accross all skus this fall. Assuming the rumor to be true, I don't think they would call $50 substantial. Microsoft is nearing 3 full years into their console's life and it is time for a substantial price cut in the U.S. In reality, MS should release a new 360 SKU that has built-in wifi and a larger hard drive standard. The price tag should be $299... The new sku should be smaller, quieter, and have the power supply internal. It should come with a 3 year warranty and customer service should offer a "hot swap" like Nintendo does with the Wii where they will express you a new/refurb console. That program is great because as long as you return the defective unit within 30 days, there is no charge and you are back up and gaming in just a handful of days.

That said, that would be forward thinking and I've lost the ability to believe MS thinks that far forward. If they did make this kind of move, Sony would have to react. Period. Anything less and I believe Sony will sit back and see how it plays out as the built-in Blu-Ray will most certainly be considered worth the extra price this holiday season.

The second that a $299 PS3 combo with a DS3 hits the market in the U.S. is the day I march out and buy one so hopefully Microsoft does pull the trigger and Sony chooses to follow.