Well it is doing pretty well here in the states but it may need a little more than extra free games for others and japan to kick into high gear.   Not sure if people know but the 360 arcade in those regions actually cost the same as the Wii but still not having great sales.  Really hope they are not waiting for the usa to get the price drop and actually hit those regions first this time around. What is the earliest we could see a price drop?  Would February be too early and piss off those who bought it during the holidays or basically March is the month that makes the most sense.  Also how big of a price drop?  I say bring that danm arcade down to $199 the pro to $299 and the elite to $399.  Hopefully MS doesn't get too overconfident and goes another 2 years without a price drop.  Can't wait to see what MS does. 

Ahh, first in!
I think its reasonable to assume another price drop right around the end of 2nd quarter next year, and it's not entirely impossible that the Arcade will sink to 199$, but the prices are still way too high here in europe though...

I expect Microsoft will make a price drop when GTAIV releases. I have this gut feeling they will do that. And do some kind of ad/promotion to get consumers to jump aboard the Xbox 360.

Next year....Right around the time GTAIV releases.

You heard it here first, from me. And Grimboyjr.

MS could/will make a killing on the X360 if they could get the X360 to $200 for the Arcade, when GTAIV comes out.

^ Yeah GTAIV release, they'll want to lock up exclusivity for V, and VI. If they are smart anyway.

Umm...adding two games ( Forza 2 & Ultimate Alliance ) AND $20-$50 price cut this year isn't good enough? Why would Microsoft be stupid enough to lower the price AGAIN about 4-5 months after the first price cut. (Correct me if I'm wrong.) Microsoft is good for right now. They could lower the price by $100 on all SKUs for the holidays in 2008 and $50 in 2009 with maybe Halo3 bundled in as well. The only company out there that isn't doing good in terms of price cuts is Sony. Sony reduced both SKU price points ($599-$499) by $100 in its first 8 MONTHS on the market and is still the most expensive. Yes they have Mota'Storm bundled with the $499 model and the "entry" $399 model that has no BC to the PS2 at all.

If Sony were to lower those prices again in anticipation for those early 2008 games coming out, by $100 again ( I hope not ), who would be the winner or loser then? Microsoft is in a good position right now.

Next Summer.

Not only that, if most people are assuming that GTAIV could move 15-20m software units, that means there's a huge base out there of people that bought GTA SA and previous itenerations that are nowhere near an Xbox 360, Wii or PS3.

If MS can entice people, via exclusive content, and a much cheaper (ie, $200 Arcade, $300 Premium vs. a $400 PS3), that will really "drive home" higher addoption rates of GTAIV on the X360, and much better hardware sales. If MS dropped the price in April, or whenever GTAIV comes out, it could get a Halo 3-like boost to 500k h/w for the month....And that folks, would be really good in April.

You my friend made some good points

You deserve a cookie

March, maybe even februari