if its true then the sales of 360 will remain high in america

The Jasper MoBo may already be in parts bins, meaning consumers could start seeing them on retail shelves when the 60GB SKUs become available as soon as August.

It won't be an immediate, complete transition though. Recall how Zephyr MoBo units were being used well after the Falcon was introduced until stock had been depleted.

Regardless of whether the Jasper models are cheaper to manufacture, MS is not going to instantly pass the savings along to consumers until it benefits them by resulting in a greater number of sales to offset the price drop and maximize per unit profits.

But I agree 100% that the 360 needs price cuts across the entire hardware line up MS wants to see improved retail sales. I'm curious to see how an Arcade SKU at $229 would move personally.

More likely they'll just remain on rough parity with the current minor bump following the inventory clearing sale on the SKU most consumers have been buying (20GB Pro).

Announcing a $50 price drop on the 60GB SKU immediately after clearing 20GB stock will not result in a subsequent surge of sales any more than Sony's transition from the 60GB to 80GB SKU did by dropping the price of 80GB to match following the inventory clearing.

If anything, an immediate drop would probably upset those who had bought "bargain" 20GB SKUs, only to see the improved models drop to the same price.

Although it would be a better deal for consumers (more HDD space at the same cost), a 60GB SKU would not move significantly more units than the 20GB SKU at the same price unless not all consumers can find the discounted models.

Not official yet, still $349

60GB on sale for 349.

http://www.ebgames.com/Catalog/ProductDetails.aspx?product_id=75060

If Microsoft makes it to cheap then it may be perceived as just that, by the general public that is.

No. Because most consumers are looking at the game library first.

The questionable quality of the hardware is already common knowledge. We've already seen how many consumers (primary core demographic) are all too willing to put up with hardware problems in the interest of playing the games.

while that's no doubt the case (I've never worked in retail so I'm taking your word for it), I can't imagine any company  going after Target for selling their product under price. It's too much of a potential sales loss if the company retaliates. (picture if Walmart decided to stop selling Xbox 360 consoles.) I'm not saying that's the case because I really don't know, but I can't imagine wth Microsoft would care if Target wants to take a loss on selling the consoles. MS already has their dough.

No product in the US can be price fixed by the manufacturer... this is illegal.  However, consoles are likely similar to printers... very little margin for the retailer, so a $50 discount by any retailer would probably mean selling at or below cost.

A company that doesn't respect the manufacturers pricing guidelines will find themselves either paying more for product or cut off entirely from purchasing.

It must sell the 60GB at 299$. Just need to do it once the 20GB stock is gone. That would boost 360 sales for over a longer period. People are used to 299$ pricing so 349$ would just be suicide