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I somehow think not responding with a price cut might be some ego thing. Microsoft doesn't want to act like Sony is forcing their hand. The fact is though the 360 has gone longer than any system I can remember without having it's first price cut. I expect when June sales come out they will even be worse than the mediocre 150k they sold in May. It's saturating at that $400 price. I expect the PS3 will sell better than the 360 in July, due to the price cut and the 360's downward trend. After than they'll probably respond with a price cut I suppose.