Microsoft will make BILLIONS from Xbox Live.

[Squilliam]

starcraft said:
I think Microsoft has a choice to make.

Option 1:
Earlier, larger price cuts leading to a larger userbase and better stead for next generation but just missing lifetime profit on the Xbox 360.

*Leveraged with games If you don't have the games then theres no point in cutting the price. Price cuts are just removing the reasons NOT to buy a console. You have to give them a reason to buy it in the first place more importantly. Something the Wii has mastered it seems. Squilliams words*

Option 2:
Later, smaller price cuts leading to a smaller userbase and a more difficult next generation, but making the Xbox 360 profitable over the course of its lifetime.