360 needs a price drop, PS3 doesn't. It has to do with how long the console shave been on shelves, imo. I don't care to expand.

Well some people are pointing out that the lower U.S. dollar might make MS think twice about a price cut (if they were planning one before GTAIV) and they're right. I really wish they would have one simply to ensure that the 360 stays well ahead in their best market.

I'm gonna have to disagree with you on this topic--if demand were to slow in Japan (which it seems to be doing ever so slightly) that would be the perfect opportunity to allocate more units to the US, where demand is painfully high.

Yeah, 360 needs at least a $50 price drop across all models--they are still being outsold weekly (though not in US anymore), and right after GTAIV, Sony has GT5.  $100 would be ideal.

Well the two big games this year for 360 will be gta4 and gears 2. So maybe they could drop for gears?

I think ms will hold out for a price drop until june or july.

The weak dollar does reduce the probability of price cuts in USA (after all, maintaining the prices IS already a sort of a price drop since the dollar dropped so much).

That said, I still think a price drop from MS will happen in USA before GTA4. I don't expect Sony to cut their prices though, even if MS does.

One thing to keep in mind is MS has a better handle of sales and probably even pre-order numbers for gta4. They just might feel confident enough that multi system owners will pick the 360 version (that is what my friend said) and that new owners will just get advertise to hell like Halo 3. I can't wait for april and see what crazy marketing stuff they have lined up.

Well I'm waiting for my $199 360 model to come out before I think about one :x So that's my 2 cents xD I think they should push for a price drop as long as they retain profitability or break even on hardware. They've got massive software sales backing them up and it would a good move from a financial stand I think.

I don't think MS can stand by and watch the PS3 gain any more ground without a price drop. They need to move soon.

The PS3 now has quite a few good games and many more on the near-term horizon. With that said, it is starting to come down more and more to games PLUS the overall package. The PS3 has always been a better "overall" package if you are wanting a hi-def player. The price tag and lack of games, however, made it not-so-attractive.

With a selection of decent games, it now comes down to the cost of the console and the additional benefits.

A 40Gig PS3 is $399 and includes blu-ray and wifi
A 360 Premium is $349 and has no built-in wifi or hi-def player.

IF I were buying a system today, I'd take a good look at the PS3 over the 360 because of the extra stuff (though admittedly the game library still has a lot of catching up to do).

As a 360 owner, I'm just waiting for the PS3 price tag to come down some more before I get one...

Imagining what new buyers of next-gen consoles are looking for, the PS3 is currently looking pretty good. If Microsoft makes an aggressive price cut, they can regain the price lead (to go with the game library lead) and can hang onto their dominant position for at least another year. Without that price advantage, though, it's an uphill battle.

Keep in mind I'm a 360 fan and think Sony made some huge mistakes in the launch of their system but I do believe the 360 is in trouble if they don't regain a significant cost advantage...