MS isn't going to respond because when npd rolls around the 360 will have stomped the ps3 again, why talk when you are doing well, it's why nintendo isn't saying anything, nintendo is doomed right?

You're still ignoring that neither console is anywhere near the magic $200 mark that consumers snatch up in droves.

Who is in the better position to reach that point first and remain profitable? The console that has received one $50 price drop in 25+ months or the console that has sliced its price nearly $200 in less than 12 months?

At this point, MS has to be turning a healthy profit on hardware and with 65nm GPUs coming, they should be able to really attack Sony with a $249 or $279 Pro when GTA IV hits next year. Sony has already burned every option they have for price drops; if they even hope to turn a profit with the PS3, they'll have to hold at that $399 mark until late next year. 

Yeah I mostly agree, I think this year sony has done a lot of drops, I think next year they wont have as much to move while MS will. I expect one of the 360 models to be at 200 by next year, i'm hoping GTA4 makes it out early in the year with another price drop on 360.

True, Sony has done every "last resort" marketing technique in the book. All they can do now is pray Microsoft or nintendo dont do any more price cuts.

http://www.gamedaily.com/articles/news/microsoft-hypes-xbox-360-momentum/18566/


# For the month of October, Xbox 360 led in total revenue with $354 million compared to $246 million for Wii and $116 million for PS3.

# Xbox 360 software revenue at retail surpassed that of Wii and PS3 combined.

# For the month of October according to NPD, Xbox 360 software represented 54 percent of total software sales (at $162 million dollars) for this generation, compared to 30 percent for Wii and 16 percent for PS3.

# Xbox 360 was home to seven out of the top 10 rated games through the end of October according to Metacritic.

# Of all 3rd party U.S. software revenue in October, Xbox 360 generated more than double that of the PS3 and Wii. Xbox 360 weighs in at 57 percent with $130 million, compared to Wii with 28 percent and PS3 at 15 percent.

# PS3 and Wii combined had one third party title in the top ten console title list for the month, while Xbox 360 weighed in with 2. Since November, third party partners have seen their titles hit the top ten 29 times for Xbox 360, compared to 2 for PS3 and 2 for Wii.

# In last week's earnings announcement from Electronic Arts, Xbox 360 represented 50 percent ($218 million) of their total revenue during the third quarter. In fact, EA titles on Xbox 360 outperformed those same titles on PlayStation 3, PlayStation 2, PSP, Wii and DS combined.

@sinha

I think someone pointed it out already. But you get the point of the thread right?

This thread has a point??

^^ well if you don't see the point, there's no point for you to post here either.

Actually, that's not true, my post had a point, to correct false information. I posted in here because one full sentence of the (beautifully written and information-filled) original post which weighed in at a massive 2.5 sentences was completely wrong.

@ Rocketpig: I suppose Sony has played their hand a bit early, but at this point they don't care about much other than ensuring a larger install base. And with the embedded BluRay player, most people still see the PS3 as better value regardless, so a higher price point is both expected and natural either way.
I don't think the 360 has the ability to move units even if the price drops significantly, the original X-Box was always cheap but never very popular.
I'll grant you that the X-Box brand is more established now than it was then, but people by and large view it the same as its predecessor in most regards.
A name and product that failed to take of the last time around, will most likely struggle during round two as well I think.
That said, MS did make a commendable effort last gen, and sales were good for a debut machine!