Even the most hardcore fanboy can admit that the 360 has lost some steam in the past few months but I know one way that they would be able to easily leave PS3 in the dust and even give the Wii a good battle:

Drop the price to $200.

With the falling price of hardware I think this could be possible.

Let me ask you this: If you could choose between a Wii for $200 or a 360 for $200 which would you choose?

Even for me this would be a tough choice. I'd go with a Wii but only because I have a PS3 and a gaming PC but still..... That would be a tough choice.

Well the 360 arcade is currently cheaper than the Wii in Europe, so I would be able to make a pretty good guess what would happen if the 360 was cheaper than the Wii in the US.

it would be even better if it was that cheap with a hard drive included.

I didn'r realize that. Anyone got the sales stats on that?

Hold on, i have a better one, ready : FREE

That would guarantee them winning the console war, But i doubt i would get it though, i hate free products.

no just make XBL free.... people now a days get a bit smarter with their money and $50 = one fill up versus a subscription to an online gaming service.

Yep, I have argues that before. Drop the price of arcade to $199.99 and the Pro to $249.99 in the U.S. and sales would go up tremendously. In japan, I think an $100 price cut in conjunction with a slimline 360 that is advertised as "reliable" in conjunction with a heavily advertised KH3 exclusive relase where Japanses buyers can pick one of 2 different bundles that come with 5 games free would stimulate sales enough to allow the 360 to be highly competitive in Japan. I think Microsft should foucs on the U.S.A. personally...

We all know that a price cut would help

In my opinion Microsoft made the same mistake that Sony is on the same path of making, and a price reduction alone will not fix the problem ...

There are only so many people who are willing to spend more than $300 on a console; by being on the market for so long above this price they saturated this market and will see declining sales in the future, while (at the same time) the larger group of people who are willing to spend more than $200 have heavily adopted to the Wii (and have little remaining interest in the XBox 360).

Microsoft needs a "Relaunch" where they can release new (high quality) software, along with a price reduced hardware, in a SKU that has added value; essentially, when they're heading into a period with a couple big releases they should announce a $50 to $100 price reduction and include a game or two (and an additional controller) with the system to encourage sales. A $300 XBox 360 preimium with Gears of War and Forza 2, heading into the release of a couple of big exclusive games is much more attractive than a $250 XBox 360 on Arbitrary Wednesday.

MS announces X360 is 100% reliable.