Yes they are. They'e also lower than every other Year since.

To be expected. Nothing sells forever. The 360 has had one helluva run though and MS have to be greatly pleased by their console's performance this generation.

No need to care about marketshare at this point. Not at all because all the potential hardcore gamers already chose their platform a long time ago and therefore there's not many costumers left who you'd want to tie to your echo-system.

I think Sony's price-cut is stupid because they're losing free money just to get some meaningless marketshare at the end of a generation.

Let's say MS makes $100 in profit off of each X360 sold (yeah, it's most likely not that much but a smaller number only supports my argument even more). If they did the usual $50 price cut that profit would shrink to $50 on each unit.

Let's say without a price-cut MS sells 9 million X360's and with a price-cut at $50 they would sell 11 million in the following year.

Now do the math.

9 million x $100 = $900 million

11 million x $50 = $550 million

Even with the profits from more SW sales and Xbox Live subs those price sensitive 2 million extra customers cant bring in $350 mill in profits this late in a generation.

sure, the last years kinect pushed sales. without a kinect push the last years, this year wouldn't have such a decline. we would also have a decline because we are so late in the gen and we have many next gen rumors but much smaller. so, kinect increased the interest the last years that's why sales were so high then. you get a bigger decline then if you have more than one reason to lose sales. other consoles lost sales because of next gen and because we are already so late in this gen and xbox has the same reasons + kinect doesn't sell consoles anymore.

and since microsoft also knows that i'm pretty sure they don't think sales are so horrible like some other people think.

Not really a big deal imo.
like i said two years ago the 360 is becoming a holiday product, like the wii was.

You need to look at the Wii U Slimebeast.

You cant just think MS will let Nintendo have a free pass in America with Wii U. They cant afford to let it take off so easily and they cant afford to let 360 sales stagnate while the competition moves forward.

Is profiting good? Yeah. Brilliant.

Is staying relevant good? Yeah. Brilliant.

My point is, Microsoft still need to be competing while profiting at the same time. Look what happened to the Wii. It stagnated. People lost interest to the point that it couldnt be revived (albeit for different reasons).

I think there won't be a price cut this year just because around 2m of additional sales won't change a thing for X360. Maybe there will be one 100$ price cut when they announce NextBox next year.

Well, I thought that Kinect would peak in its 3rd year like the Wii did, but that´s not gonna happen. I think things won´t get better with WiiU coming this holiday season and NextBox and PS4 likely in a year from now. The 360 will be fine over the holidays (at least in the US) but it´s been declining in the rest of the world for quite a while now.

2 of those platforms are dead / about to be replaced, one of them just got a revision/cut leaked.

What can/ will Microsoft do, with no pricecut on the horizon?

They will sell another 10m X360 and earn a lot of cash on HW alone.