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mrstickball said:
DMeisterJ -

The issue with the 20GB drive is that the 20GB drive is (about) $2 less to make than a 60GB drive...So I do think there's a chance that MS will be looking at dropping the price to $300.

For all we know, the $300 drop is to test the waters by both clearing stock out, and seeing how consumers react to the $300 price point.

How do you think people would react to a $300 price point?  Not buy consoles?  Take them back?  Only an idiot wouldn't know what would happen at a lower price point.  (Hint:  more sales).

I just happen to think that your post is overly optimistic.  If they are price cutting, I guess that they're planning on making the money that they won't be making on consoles on software.  But with Microsoft focused on profit, I couldn't imagine losing fifty dollars per console, and (most likely) losing money on every console sold helping that train of thought.  I don't know how much they make per console (or if they do at all), but price-cutting is probably the exact opposite thing that they want to do.  I think that we may see a price cut at the end of the year when Gears 2 or something comes out, (November), but I don't think it'd happen at E3.  They don't know what the holiday season holds, and it'd be showing their cards too early.