Well, it's that time again, DESPERATION or CONFIDENCE.

This time, it's Microsofts confirmed price drop of the European regions.

Now this is the second price drop in this region in a few months, so do we think that it's confidence that they have reduced the cost of the 360 and can sell it at a lower price to entice more consumers to purcase one?  Or do we think that it is desperation. The first price drop failed to do much, and the 360 has been in a close race with the PS2 (Yes, PS2) over who will be in last place in EU.  Now I don't think that the PS2 has beat it, but just last week, PS2 was 1k away from beating 360. 

Also, what affects do we think this will have?  Sustained higher sales?  Or a spike, then back to normal levels?

Won't we first await first week sales so you can say after it failed and meaning you will be right again and therefor doing damage control?

CONFIDENCE!! This will definitely boot 360 sell.

I dont know if it will fail or not ,but another price cut so few time after the massive march price cut its a clear sign of desperation about moving a product that ,to put it clearly ,dont move at all.

Here in Spain they take the 360 Elite plus some cash in exchange for a Wii or PS3 ...

Here in netherlands we have windmills. They are needed for the cell power

just one thing the desperation is on sony side they cannot afford price cut this year, where xbox360 still have a room for more price cut this year or 2009
especially when valhalla mainboard finished for slim redesigned xbox

about ps3 vs xbox 360 price cut

win.

I think they need it.
They are as desesperate.

As someone as pointed out in N4G comment :

PS3 is expensive : it makes sense to drop

Xbox360 is already the cheapiest : it makes no sense to drop the price

... except if u re desesperate !

@ OP
I honestly think M$ has this last hoilday season to outsell sony or they know all 3rd parties will start to jump ship. I think that with low sales of Both high profile RPGs (TOV, IU) that 3rd parties are seeing that you can only sell CERTAIN types of games on 360. Sony seems to be in a better position to sell all types of games.

Of course im talking about the jap devs. Most western devs are on both systems anyway.

So to answer a price cut is always to get more sells or to sell more then someone esle so i choose DESPERATION.

Libellule has put it very clear ....when you are the cheapest around (and the Arcade at 199 euros was the cheapest machine around)and yet you feel you need another price drop its a very clear sympton of desperation.