I do not think there will another Xbox 360 price cut for a while. Instead, I think Microsoft will add Blu-ray drive as standard in every console. Now that Toshiba and Microsoft have officially announced that they will not make HD DVD drives anymore, I see this as probable. Obviously, it would allow Microsoft to compete more directly with Sony. Think $500 vs $450, and $400 vs $350, the only significant difference being games. Imagine a Blu-ray player for $280 (Xbox 360 Arcade).

I think Microsoft would be able to do this without losing much money in the cost to make a 360. The most recent data I saw, which was over a year old, had the cost of the 20 GB 360 being $323, but it has probably gone down since then, maybe to $290. A Blu-ray drive costs about $100, which is about $80 more than a DVD drive. That means it would be roughly $370 to make a console, which is not much more than $350. Perhaps it could even be profitable, if my numbers are off.

This may be why Microsoft is having supply issues. Maybe some of the manufacturing plants are making consoles with Blu-ray drives, while less are making them with DVD drives.

Expect an announcement sometime in March.

P.S. This was written with a false tone of confidence.

i dont see the point in making it standard... No games will ever be on blu ray for the 360 because that would require the 17 million 360 owners to throw out their 360 to get a new one since theirs wont be able to play all the games. I can see a price drop and a blu ray add on. this way current 360 owners can just get the add on if they want and new 360 owners will get a 360 at a lower cost and if they want can add on the blu ray drive and it will still be competitively priced with the ps3.

Must be Caturday.

I dunno man. I think they will take a while to add a Blu-Ray drive, and I bet a price cut comes sometime this year or at least a new SKU.

The need to concentrate on fixing the RRoD and letting the public know its gone, imho.

chinese or Italian ?

oh wrong tread.

There was just a price cut on 360's in Canada, at Future shop atleast, i never looked anywhere else. $50 on the Prem and $50 on the elite, they now cost 350 and 450 in Canada.

When people say "screw DVD's", then blu ray will catch on.... Hear any1 say that yet?

 I don't think it would fit...

I've said screw DVD's :D

It's more likely Microsoft cuts price by 100 dollars than add a blu-ray Drive for free.

and trust me, both is highly unlikely.