They won't drop it any sooner.

Microsoft *should of * dropped the X360 price in March last year, right after Crackdown and the other 5 games that sold 1m in March-Apr last year, but they didn't. MS has waited to the last possible moment to make moves like that thus far....And I don't expect any different.

However, if MS did want to gain a bigger marketshare in Europe, they'd need a 75 Eur price drop, and try to gain a few big exclusives that Europeans care about (Racers, soccer games, ect).

$50 now so it can stay ahead of PS3. Another $50 for GTA.

Sony is outselling MS right now, so I wouldn't exactly call them desperate.

So losing hundreds of dollars per PS3 just to remain competitive with the Xbox 360 isn't desperate?  Multiple price cuts in the first year a system is released isn't a sign of desperation?  How about we talk about this again next week after we find out how much money Sony has lost on the PS3 last quarter.

In north america a price drop is not needed, but in other regions including japan a price drop is desperately needed, they need to cut the price in those regions to improve sales and be back to outselling the playstation 3.

Also you have to remember that Microsoft is not the one playing catch up, they are still selling well and stilll have the much larger install base. Microsoft can wait it out.

2 price drop
the first now
the second with GTA

^ yeah, 2 price drops in Europe, one now and the other just before GTA

one price drop in NA just before GTA

Like them dropping the price would even matter. People need to understand, that pricedrops and price in general isn't the most important thing to larger or increased sales. Sometimes companies just can't do anything possible to change their current situation.

This tread looks vaguely familiar...   As such, I'll provide the exact same response:

When will Microsoft drop the price?  I don't think it will be as soon as most people think.  Maybe E3 or later.  Why not?  Because GTA IV will sell systems anyway.  No reason to prime the pump if the water is going to flow.

How much will the drop be for each SKU?  Sadly, only about $50 for each sku.  Maybe a bit more if the systems drop the packed in games.

Will Sony follow with the same price drop for the PS3?  Absolutely, though they may wait up to a month so MS doesn't steal their thunder or make them look like a follower.

Does anyone have an educated guess as too how much Microsoft are clearing on each 360 sold?  Good question.  I'd guess just about break even at this point.  Sure there may be a bit of money made on the hardware, but that's currently being offset with advertising, warranty repairs, and other expenses.