It's already happening in Europe, but NA is different

Why don't people get that MS has always been far more interested in turning a profit next decade, and were willing to lose billions as the price of establishing the XBox/MS as a viable home entertainment choice?

Whatever MS does, I'm not sure Sony will be able to respond. The games division kept them afloat the last decade, and now that's in the crapper. They have said that maintaining profitability is their priority this year, and not to expect a price cut. More likely they will try to add new, but cheap-for-them, features to the PS3 to make it a better value.

"How will Sony respond if the Xbox 360 sees an $100 price cut this summer?"

Probably with alot of shit in thier drawrs

 Haven't bothered looking at numbers, have you?

X360 before price cut: ~27,500 units/week

X360 after price cut: 50,000 units/week (at the lowest average)

So I fail to see how almost 100% better is "minimal"

At any rate, an aggressive, Euro-style price drop on the 360 would have the same effects in the US: anywhere from a 75-100% increase on a weekly basis for quite some time. Sony really isn't in a position to react. I guess the biggest question would be if the price drop actually would hurt the PS3 at all (in Europes case, the 360 has sold much better, but the PS3 has been uneffected by the 360's pricedrop). If it did not hurt PS3 sales...No big deal. If it did...Sony would have to consider dropping the price, and hurl themselves further into the red.

lol, you act like MS doing this wouldnt be "hurling themselves further into the red" they still arent making a profit per machine, so dropping it 100 dollars would make selling 360s bad for them again. Since the PS3 was almost breaking even on each unit in Q1 this year, Im going to assume its past that point now, it would hurt MS alot more then Sony.

Laugh?

 Care to cite an article by saying that they aren't making a profit per machine? Microsoft has grossed ~500 million dollars in the past 9 months...That would lead me to believe their machine is atleast somewhat profitable.

And care to back up your "Sony was almost making a profit on the PS3" when their own financial numbers say they're going to be more than 1 billion dollars in the hole due to the PS3? If it was remotely near profitable...How could it lose so much money so quickly?

^yeah, but the rodbox is 2.5 years old you know...

Probably 25-50 dollar price drop

I doubt a $100 price cut, but perhaps $50 this summer? Personally I think a $299 Premium SKU sounds much better then $349.......

Although I'm still amazed that the system is still selling for so much given the time on the market. My bet is no price cut until this fall and then we'll see at least a $299 Premium with good bundled game or two, but perhaps a phase out of the arcade package and a $249 SKU & $349 Elite Bundle.

Either way I bet Sony just ignores it, plays up Blu Ray, and maybe releases another Bundle like with MGS4 again or Little Big Planet.