Sony still bleeding money on PS3 (they lost over a billion this year already). I doubt they will cut price unless they really have to which is if MS really drastic cut their price.

However, I doubt MS will do that anytime soon. Xbox 360 still sell on the par with PS3 give or take. I think MS is more concern about being profitable and probably won't drop price unless 360 sale suddenly take a nose dive.

The effects of a pricedrop in Europe were minimal. In fact, the 360 recently got outsold by the PS3. Also, MS may have enough money, but its shareholders will not agree on losing more money on the 360 after all the losses so far.

Also, making a console too cheap, may also give the wrong impression to customers. It already has the shady RROD image which its thanks completely to itself and by making it dirt cheap, MS might get the unwanted side effect of getting a cheap image. The price cut did do wonders for piracy in Europe though. Lots of kids with hardly any money now bought it and enjoy getting warez for them.

Sony won't cut prices this year, simple as that. And I think that for Microsoft that means they don't have to cut prices, so they will be less likely to do so. Maybe a 360 NA pricecut of $50,-. I think that will be enough to push sales above the PS3 again, but not much (in NA).

in denmark (europe) it's already cheaper than the wii lol :p and yes, the ps3 does outsell it.

 agree with above, microsoft canot sell at constant losses they have shareholders etc etc, they have to try and go for profit this time. its just not the way it works.

mabey they could see a price cut mabey not but my guess that it will be minimum, plus i don think ps3 will have price cut this year, it will just comes officially with extra items in bundle to make for a more attractive package

If microsoft drops they'll probably only drop by $50

MS shareholders are traditionally focused on share growth, not dividends (they didn't start getting dividends until fairly recently), so this assertion is unlikely.

See my comment to Gazz, above.

to stay competitive they will have to either bundle something worth a 150 to get the same value or knock off a 100....
i go with 150 b/c the consumer will have to think it something pretty special to get past the 360 at 100 buck s cheaper

the price cut has already happened in Europe, I don't think the price is moving in europe and i don't think it matters that much.

In NA a price cut could do big things for the 360 because Sony is unlikely to cut the price of the PS3 this year. It could make a big difference this holiday season, but chances are at best 360 would sell a similar amount that the ps3 sells worldwide. I think Sony would be willing to accept that and not feel that have to go further in to the red to fight them off.