To the OP:

What a brilliant market strategy!!!

oh oh i know! they should give the 360s away for free! wait no! better yet they should pay YOU to take one and play it! yess then id consider getting one

I'll take two (or THREE) consoles that battle it out for a better product than one that can do whatever it wants anyday.

If you followed the financial markets you would not be making such out of whack suggestions..

Microsoft missed the analysts target last quarter and lowered expectations for the next quarters. As a result the stock tanked a bit following those announcements.

They are in no position to make further moves that would either diminish revenue or profit ( dropping price affects both..). Dropping the price by 100$ if you sell 10 million consoles a year is a billion $ hit on revenue, even for a company like Microsoft that is not an easy to number to make up elsewhere.........

And guess who are some of the biggest individual stock holders of Microsoft. The people that make the decision and run the company. They are not going to push forward things that greatly reduce their personal net value........( insiders holds 13.1% of the company )

PS : they missed earnings by only a couple hundred millions dollars and the company lost 8% of its valuation..

despite the mac propaganda, and the populatiry of Linux in online forums, Microsot still owns over 80% marketshare of operating systems which equals BIG money.  it is like saying that the New England Patriots have competition if they played a bunch of high school football teams.

I'm looking to buy another 360. I say MS should drop its price to $99.

im sure Steve Ballmer, M$ CEO, would love to be replaced by the stakeholders too.

I've always wondered just how big a loss MS or Sony could take on their hardware before somebody got charged with product dumping.

Microsoft is led by business leaders who know what they are doing, so their course of action now is probably their best chance for success.

Perhaps Microsoft doesnt think that they can compete with Wii's market or gain much on PS3 by dropping XBox 360's prices too much.

A price cut would boost sales, and may seem like a good idea in some respects. However bieng able to have some kind of bundle package where its say $250 for the unit + 2 games (kinda like they did with the Original XBOX) would be sweeter than just a $100 price cut.