alot people would pick wii over a $199 arcade 360(i wouldn't pick any between the both).....if there was a $199 360 with a hard drive included on the market,then ppl would slightly shift to HDTVs.....

I would disagree with you on that point.

But i would imagine a lot of wii owners going for the 199 360. 

i thought the 360 being cheaper in europe had already got rid of the price myth

hey,i could be wrong....

let's just wait for the price cut to see what will happen

The thing is, will they have shot their load too early? They surely cant lower the price anymore....sales will see a spike but then they can only drop.....

This is not a desperate gambit. This is the natural progression of the 360's price. I would describe the PS3's price drops as desperate, but that is neither here nor there. If they bundled the arcade with Banjo-Kazoie, it could challenge the Wii but I do not think the Wii is whom MSFT is targeting. I think the arcade is meant to target MSFT's target demographic who want to game on the 360, but are hitherto unable to afford it.

Unable to get a 360? or buy the whole system for a single platformer? nah. I still see such a critical drop as a gambit to beat Sony's sales.

A brief spike that isn't sustained is probably the worst possible outcome because if they can't sell a HD console over the Wii when $50 cheaper and it doesn't give them any real traction against the PS3; they just don't have much more to offer unless they plan to put them in Cracker Jack boxes.

@Xen

Do you think, using your "guesstimator", the PS3 is still almost guaranteed to end up in 2nd place before this generation ends, like many seem to believe?

^The one who will end up 2nd we will know by Christmas.