I think itd definitely help out in the battle vs the PS3, but not really going to affect their position against the Wii. If I had a HD tv to enjoy it on, I'd consider getting an XB360. But my old CRT from 1992 is holding up fine, and there's no need to fix something that aint broke. If I get an HDTV down the road, Id consider an XB360

Well yes economics dictated lover price point greater quantity demanded however not the amount of demand changes.

The $299 price is temporary according to Ars Technica. Its like the 60gb with the PS3. The drop is to get rid of stock and release another model at the old price.

http://arstechnica.com/journals/thumbs.ars/2008/06/30/mole-microsoft-to-drop-price-on-20gb-360-makes-room-for-60gb?bub

So $299 20gb discontinued
$349 60gb. Maybe new more reliable hardware?

the best exclusive content is on the xb 360, not the ps3. examples: fable 2, gears of war2,banjo,infinite undiscovery,tales of vesperia,too human,huxley,age of conan( i know the last 2 games i stated are on the pc or will be, but they arent on the ps3),champions of heros,halo wars,alan wake,viva pinata2,soul calibur1 on xbla,forza3,star ocean4. ps3 has lbp,resistance2,white knight story,infamous,ff13,ffv13,god3,gt5,tekken6,disegea3,kill zone2,jak4,uncharted,rachet & clank. this all could change after e3 and tokyo game show,and things could be reversed but it would take alot to change it. the real discussion about which console has the best exclusives wont be i think till fall next year, because dev's will understand the ps3 better, so we will see i say in 1 year.

If Microsoft bundled the $300 Pro with a $100 gift card good only for Xbox 360 games, the bundle might be able to reach the masses and sell well. As it is, I think sales will spike, and then decline, but maintain a level of sales in the states that is noticeably higher than now.