I think you forget that the first Xbox saw massive price cuts fairly early in it's lifetime.

In the US the 360 got only one tiny 50$ cut in almost 3 years which is really nothing.
And i think also in europe the first one was about 100€ cheaper at this point of its lifetime than the 360 is now.
At least i bought mine for 170€ back then (awesome Ninja gaiden Bundle!), must have been around 2004 or something, maybe even earlier.

Being a long time microsoft hater (for reasons that have nothing to do with the XBox) I am actually quite suprised and impressed at how Microsoft is handling this generation.

They have massive third party support. They keep stealing games from their competitors (GTA and FF are still incredible), they have massive amounts of software sold for their system and they continue to stay ahead of the PS3 in WW sales. The longer they can keep the WW sales above PS3 the better their situation.

They are doing exactly what they wanted to do this gen in spite of the Wii explosion. Its great.

Im sure Microsoft wont be as quick to abandon their console this time around....

It also helps that ms dosen't even care about money anymore just destroying the competion fisrt they stoped the mac now they have stoped the ps 3 whats next bill? Microsoft even makes its own ecurrecy called ms points if ms was a contry i think they could invade mexico and fix its drug cartel problems with its supperior firepower from its 10 story mechs and legions of spartan 3s.

The comments about low prices and early abandoning the first XBOX, are pretty accurate and reveal a bit of the situation. What counts most however is that 360 saw only the first wave of the big software hits. There are more to come, and thats the important thing. And furthermore, the day by day announcements of new games (multis or exclusives) show us that there is still, a long road to ahead for 360's lifecycle.
One last thing. @ HappyNoodle
Do you bother comparing the software sales? Just take a look at them... Nough said.

Not surprising, didn't the original Xbox have a real price cuts by now?

Hell they cut the original Xbox price by 100 (pounds?) after the first month it launched in Europe

Yeah, they don't care about money... that's why the 360 still costs 350$ in the US. Not to mention using points instead of real currency is a common model for microtransactions (from online services to theme park drinks).

Your whole post makes you look like a nutso =/

@HappyNoodle: Where did you get your data from?

On June 2005 Xbox was at 21.5 mln not 24. (http://vgchartz.com/weekly.php?date=38522&console=&maker=&boxartz=1).

As of now X360 sold around 4.5 milion units more than orginal Xbox did in the same time (http://vgchartz.com/hwlaunch.php?cons1=XB&reg1=All&cons2=PS3&reg2=All&cons3=X360&reg3=All&weeks=160)

I think the Xbox 360 is doing pretty good compared to the Xbox.

http://vgchartz.com/hwlaunch.php?cons1=XB&reg1=All&cons2=XB&reg2=All&cons3=X360&reg3=All&weeks=160

Edit:  Doh!  I was beat to the punch.

They had no intention, going in, of halting the first Xbox's support.  nVidia decided "Hey, we're gonna screw them over and stop manufacturing the graphics card!  LOL!"

Microsoft develops and manufactures all parts of the 360, so that won't be an issue this time.

And yeah, the 360 is 'only' outselling the Xbox for this point in its' life by 40k a week, despite having a much higher entry price and with the original's extra holiday season.