We now know that Microsoft did extremely well in 2007, however they could have done better.  It's fair to expect that the low-end 360 will start getting down towards mass-market prices towards the end of 2008, so now its time to call price drops.

When will Microsoft drop the price?

How much will  the drop be for each SKU?

Will Sony follow with the same price drop for the PS3?

Does anyone have an educated guess as too how much Microsoft are clearing on each 360 sold?

$100 all around in time for the GTA IV launch. It would be a crippling blow to Sony, as the lower-end model would be sub-$200

I'm thinking MS will go for Sony's throat with $199/279/349 price points three weeks before GTA IV hits.

Hopefully this price cut won't be of the $50 variety again.

If they really do that it would be amazing, and by many accounts they would probably only lose money on hardware for a quarter or two. And given the way this thing moves software (NPD CoD4 ZOMG), that probably isn't much of an issue with regards to staying profitable. In any case, they should be at 65nm and hopefully looking at moving to 45nm by the end of the year.

im gonna say 50 bucks for premium....30 for arcade....lower end model matching the wii...seems like a good idea to me

I say GTA IV launch too
arcade-$229
Normal-$299
Elite-$399

Im hoping that Microsoft will do what they did with the original Xbox one more time. Suck it up, take the short term loss and drop Sony out of the NA market with a huge price-cut. Imagine what will happen to NA sales if a Pro could be had for $30 more than a Wii and an Arcade available for under $200. Not to mention the Elite would suddenly become affordable as a second console to the PS3 for hardcore gamers.

I agree that it will happen before GTA4 launches and if Sony doesn't follow suit they are gunna get crushed

249/299/399 price points...