If they didn't do it before GTA 4, I don't see them doing it until November 2008. It could be a big one when it does happen, perhaps by $100.

Q3

Sorry but if M$ cut their price in Na we will see a $299 PS3 and it could be over for 360 then....right now 360 barely manages to outsell PS3..

MS didnt show fantastic profit for Q4 report. That included a shit load of things. I think MS wants to try to keep their revenue high right now

I dissagree.  With a year head start, Microsoft should be dominating now.  And while they are well ahead, it's a little early to call the race while they are consistently losing to the Wii and PS3. 

 The big thing, is we've seen time and time again, that cutting costs temporarily raises consumption.  As such, a price cut of $50 (I'm sorry $50 in 2.5 years, they ain't doing $100) isn't going to do anything in the summer months.  During the Christmas period, you could have gotten the 360 with 2 games for cheaper than $349.  Maybe not all the way to $299 for the pro, but $50 pales in comparison to the Christmas deals.  The other thing is momentum is huge in the industry.  Microsoft may grab another million consoles sold between now and October if they dropped the price, but then Sony is going to drop the PS3 right before the holidays and come up the big winner on the Christmas value lists.  Take that with Sony's current momentum and I think Microsoft needs to focus on the games now and save the price cut for the holidays when it'll make a bigger difference.

If microsoft does a $100 price drop, I'm sure that Sony isn't just going to sit around and watch. By the end of the year, even Sony can afford another $100 price drop. And believe me, a $299/399 PS3 is going to sell very well. And if Sony does this in EU and Japan, they could pretty much end the race for MS. I expect MS to drop the price for the 360 in the states before the Christmas shopping season (end of Oct?), and Sony to do the same World wide.

then why didn't they do this before GTA IV's release?

 gears of war 2 cant match resistance 2 and a blu ray player for christmas put together lol...

 Resistance 2, Blu-Ray player at a possible $299.99 price point at that.

 if sony do that before microsoft does, 360 is dead for sure. a 100 dollar price cut during mgs4 would be interesting