With the rise of gas prices and food prices and a drop in consumer confidence, will price cuts be more significant than ever in the U.S market for the HD consoles? Since people have to think harder about every dollar they spend, they may find they have to look for the greatest value whereever they can find it.

For example, if the Xbox360 drops in price to $300 for the Pro SKU will we see a disproportionate rise in sales compared to the PS3 for instance if it doesn't get a pricecut for itself? Perhaps even a fall in sales for the PS3 as people substitute one HD console for another?

Also could the increased costs already be helping the Wii's sales as they seem to have increased at the expense of the HD consoles?

Yes, but regarding the US specifically, the weak US dollar makes price cuts more unlikely.

im glad i bought all 3 a while ago... cause gas prices are crazy.

Microsoft would price cut after Sony; no way in hell the other way around. The U.S. is Microsoft's only area they can win in and if the U.S. dollar is doing nothing but getting weaker they will start to lose money off U.S. sales. But it is very unlikely they will cut prices before we get out of our recession.

They have more revenue streams than Sony - Xboxlive and a more developed download area, and their console has been out longer and has only recieved a $50 price cut in all this time. It is well overdue for a price reduction and even if they could only manage a $25 cut, it would be significant enough for people who don't want to spend any more money than they have to.

They have more revenue than Sony in the gaming market atm that is for sure in the U.S. but we don't know how bad the recession will be and if it continues at this rate till Christmas and no sign of letting off anytime early next year they can't afford it here. I can imagine if economists are predicting a rise in the dollar early 2009 than maybe but at our current rate I can't see it happening esp M$ taking the lead because they have the most to lose(Sony can rely on other markets).

With lower purchasing power for the average American it will become much more difficult to sell HDTVs and expensive HD consoles. Certainly, price reductions will help HD consoles but I suspect that those gains will be offset by people not seeing value in the "Ultimate HD gaming experience" if they don't have and can't afford a HDTV.

Profits are extremely tight due to the weakness of US currency anyway. Asking for a price-cut soon is laughable.

but i dont think they will cut prices cause the US dollar is very weak right now