As of September 1, Microsoft will be offering an Elite console (which is becoming the pro really) with an HDD exactly the same size as it's main competitor, virtually identical processing power, but missing a Blu-Ray drive.

As of that moment, Microsoft's price point is quite likely to become untenable.  Whilst it does have a stronger games library (and probably a stronger line-up coming up as well), the Playstation retains a formidable brand-recognition advantage.

So people, where will Microsoft go from here?

tomorrow's gonna be fun

Either

Add a mid sized - HDD to Arcade system, effectively giving the pro a $100 price reduction.

or.

Drop the price $100 by late August 2010

Straight down the tubes!

Microsoft should increase the price of their cheapest model.


oh wait... they already beat me to it.

Netflicks, lol

Depends, though I would like to see the full announcement from Microsoft before I say anything decisive. And even so, I can't predict what will really happen other than the market is going to take a new direction. What that direction is... is a good question.

They're going to wait it out until Natal fall 2010.

Now - then all we have is games to keep us happy.

Nowhere.

Focus on being profitable. 8 million lead will go a long way...and Natal will take care of things next year.

Ummm, if you are going to go with power, don't take on the Cell, take on the RSX....

Anyway, there is not much they can do, apart from increase the price of the Arcade in some territories. I assume they will do some Christmas bundling as usual