so my thread is correct then

microsoft are really trying their best to get back in the game. it pains me to see what their efforts result in. price drops only work to a certain extent, in my opinion. once the console is already affordable, and cheaper than the competition, then another price will only work as a temp fix after that. the 360 right now is already great value. making it any cheaper gives a very inexplainable impression to the console.

the way i personally see it is; instead of people saying "wow, the 360 is so cheap", they could be saying "why is the 360 so cheap?" that's just my take on the situation though.

Maybe you chould put up a link to remind us.

To be honest I think they have a big issue with the following:

reliability perception
noise & heat
add-on strategy

to get into living rooms in that manner. A loud, noisy games console is one thing, a loud noisy movie/media player is another. If BR does take off its going to need an external drive handing off it and expensive HDD if you want decent download capacity or have to limit itself to DVD/download crowd.

Personally I don't think the 360 design is that suitable for the role outlined here - I know technically it can do it, but it has a lot of flaws in my opinion in this role. It may get them a foot in the door, but that's it. To be honest PS3 is far better designed in this role (which funnily enough was what all gamers hammered it for early on vs 360).

IF MS aren't careful they're going to actually reinforce Sony message for PS3 as a home media centre.

PS3 is even and 360 close to even the only console that makes money is Wii

no incorrect

i think the best solution for MS now is give 360 for FREE....

No you are incorrent. Howard Stringer already confirmed that the PS3 makes more on software than they lose on hardware. 

I still think Microsoft has a huge demand issue. And the OP stating that Microsoft will drop price again in Europe is a bit ridiculous, unless they really do wanna start selling consoles for cheaper than they sell games lol.

Microsoft is about to have some huge losses coming up, and if Sony does follow suit and drop price as well this will all be in vein.

then in terms of hardware he is correct. The key word was console.