Because MS has already lost billions on the xbox franchise and would at least like to make some of that back.

Also as the number of systems increases market share becomes less and less of a factor because a lot of people aren't buying more than a game or 2 a year. Currently the 360 has a very high attachment rate and major games can easily sell 1 million + units, so an extra million units on the market probably won't make a huge difference in software success.

Because M$ is content with their current situation.

Marketshare is everything in this business, Microsoft should know that more than anyone. If Microsoft didn't have such a colossal marketshare with Windows, (therefore ending up with lots of software that only supports Windows) nobody would be forced to use it, and Microsoft would have gone out of business years ago.

Microsoft is working hard to keep share and its costing them a fortune.

Yup, windows kicks my ass in my sleep everytime I think of installing linux.

To a point, both companies are more concerned about turning a profit in the rest of the current generation's life. Microsoft is still being much more aggressive than Sony with their money, however.

Because they don't need to care. MS is easily one of the richest companies in the world.

I could be wrong, but I think Microsoft's pricing strategy for games, accessories, downloadable content, and console hardware is heavily focused on establishing "Value" for their products at a certain price level ...

To put it another way, they're trying to break the association with a console seeing price reductions (to prevent people for waiting for a price cut), eliminate the association that downloadable content is inexpensive or free (to create additional revenue streams), and to reduce the association with older games being budget priced.

Marketshare is just something consumers care about. And TBH I would rather go with Company A who makes a profit but comes in third rather than Company B who comes in 2nd but takes a loss. We, as inet analyzers may think it's a bad idea to not lower the price to sell more, but if you were in MS shoes why would you lower your price if you have an upcoming powerhouse lineup thats going to perhaps sell your console anyway.

Most posters do not fully appreciate the way Microsoft does business. They most certainly do not do business the way everyone else does business. Microsoft is like that chess grand master that plays the game ten moves out while the other guy has only thought three moves ahead. We are talking about a company that is designing operating systems for robots. Sponsors free think tanks for mathematicians. Among many bizarre approaches to business. Which to the passive observer appear to be pointless applications.

Then again who will be laughing all the way to the bank in twenty years when robotics finally takes off in the domestic market, and who is going to be privy to new algorithms that resolve certain critical problems in computing. That is a real brilliant strategy being first to any market or concept gives you a critical almost insurmountable edge on the competition.

Microsoft is like an insidious tortoise slow, but oh so profound in every little movement. While everyone was talking about Final Fantasy almost nobody caught the real important news of their conference at E3. Their partnership with Netflix in one subtle step they shifted the entire dynamic of the industry. Now their console is viable competition against both cable and brick and mortar providers. They have the pricing advantage, and with their share option its going to draw more people to their console.

Watch when the fall update arrives on live, and these forums have movie night threads begin to spring up. Watch as the Netflix subscribers being to network with their fellow gamers to watch movie marathons on their days off. Hell I am already thinking about starting an Anime club on these forums, and if Microsoft lets the community use the mics during movies we could even have ourselves some MST3K fun.

While I am thinking about it if there are any anime buffs on these forums that have live and a 360 post on my wall. I am thinking I want to have some series marathons once or twice a month. Perhaps the first will be an Air Gear marathon.