In the past everytime the PS3 looks to be slowly catching up with Xbox 360 something happens.. during the holidays 360 typically comes back from dry months the PS3 does well.. or at times a big game release will boost 360 sales.. This time the boost could be coming in the form of a serious price drop.

This news, although yet not proven true should be no suprise.  With rumors of new consoles only a couple yrs away from about every maker ( recently Sony confirmed it was developing the PS4 now, which means they likely have for months ) and MS needing a boost this could be it.

If true, 250 GB Xbox 360 with Kinect models would drop from 399 to 299.. and Standalone 250 GB models would drop to 199 ! With a drop like this it would seriously be a game changer..

We can hope this is true.. sooner or later it almost has to be.. considering all of this gens consoles are nearing the end of their primes..

http://www.dailytech.com/article.aspx?newsid=21768

I doubt the 360 will drop that much, it would probably induce a prce dropping war with the ps3 also.

It can only further benefit Kinect sales by dropping into an even more mass market price.

its common sense a price drop is coming from both SONY and MS

MS will drop $50 for 4gb and $100 for all the other 3 sku's

Sony will drop $100 on all 3 of their SKU's

and both won't any lose money on hardware

and nintendo's already made a pricecut

without this each of the side's won't be competitive this holiday season

I disagree. If Sony does a $100 drop, they will be losing another ~$50 per console sold again, I'm afraid.

That combined with the massive company losses lately, I don't think they will stomach any more than a $50 price cut this year.

I agree with the rest, though I am not sure where the 4GB 360 will end up, price wise. It may get phased out and replaced with the 250GB at $199 or it may go down to the $99-129 range.  Plus, lets not forget that hard drive sizes are likely to get shifted around a bit as well.

howwould sony be still be losing $50?

sony has been making profit on ps3 from Q1 2010(Jan-Mar) after that they die reduction of RSX which further significantly dropped costs

and with time the prices of all parts used in PS3 are going down plus sony had plans to further shrink the die of both CELL and RSX

and the recent FCC reports of new PS3 models incoming will have all these cost reductions

SONY still won't cut costs till holidays so they can do further reductions till then

and the losses SONY suffered lately will be covered by insurance claims,all big corporations insure their assets

and if you read a recent report,SONY had $8.5billion in reserves

AND if SONY can or not stomach,they will have to cut $100.A $50 would do nothing for them,it will be non-effective.

PS3  can't cost $250 when Wii2 with Wii2 coming out

abt 360,they will need a model at $149 or below.they can and will do that,though i don't think that there is a need for such a dramatic cut to $129 or $99 for them as they will do just fine with $149

I hope so. I need to replace my launch-period 360. It's gettin' worn out.

Though, with that said, I doubt it'd be that severe, which makes me sad because it really would be awesome.

I'm going to lean towards something more like the following:

$150 - 4GB version

$240 - 4GB Kinect

$220 - 250GB version

$300 - 250GB Kinect

$100 - Standalone Kinect

I like your predictions. I would buy Kinect if it dropped to $100.

The best thing MS could do at this point is drop non-Kinect SKU's and drop the price of Kinect SKU's to $199 & $299 respectively ($100 pricecut) 

But in the event that doesn't happen (which I think it might actually happen) the prices will most likely be as follows

4GB SKU = $149

250GB SKU = $239

4GB Kinect SKU = $239

250GB Kinect SKU = $339

$100 Kinect plus phase out systems without Kinect bundled with them, and just sell systems with Kinect bundled with them from this point on?