You know Mircrosoft was losing money on the 360, BEFORE their new price, so they must REALLY be desperate to catch up to Nintendo! I doubt it will work like they want because there's so much competetion, and Nintendo is getting REALLY popular with the Wii. This is probably because Microsoft wants to sell more over the holidays, and they think pricing it THIS cheap will be able to compete with Wii. Notice this was done after Nintendo upped their sales forecast!

umm, Microsoft has been planning this price drop long before Nintendo upped their sales forecast. Just check the VGChartz news article posted quite a while ago.

EDIT: To add proof that Microsoft was planning this long before Nintendo announced upping their forcast.

VGC Exclusive: Xbox 360 to Cut Arcade Prices to $199.99 on Sept. 7th

Thanks to an amazing VGChartz member, we have strong reason to believe the Ars Technica price drop rumor is indeed true, with a photo to prove it. EDIT: Now confirmed via Advertisements!
General News | Submitted by mrstickball on 02nd Aug 2008 | 33,791 views, 236 comments

Compared to

Nintendo Raises Fiscal Year Profit Forecast

Submitted by: FishyJoe on 08/29/08, 15:24

They won't even outsell the PS3.

And the 360 pricedrop was expected, since it already had one in Europe in the spring.
I don't know about M$ trying to compete Wii, but they definately want to keep PS3 behind 360. The pricedrop will propably steal some Wii sales due to supply constraints, but i don't think we will see a considerable long term increase in sales. What 360 needs is games, not pricecut. The 360 library is pretty bad for people outside its narrow demographics.

OP has such insight into the inner workings of a gaming company.

"because Microsoft wants to sell more over the holidays"

Such insight, a company wants to sell more consoles over the holidays when people are most likely going to buy them due to the increase in present giving during that period and all that free time, that's quite out of the ordinary.

im not a fan of either but i'd pick a 360 over a wii anyday

It's a pretty drastic price cut. They don't need to do a whole lot more in sales to surpass the PS3, so it's likely the Xbox360 will, in fact, outsell the PS3.

I don't think the 360 tries to compete with the Wii... by taking Miis and contemplating taking an Xmote, they were more trying to bring along Wii owners into their customers, and not steal them before they buy.

I mean right now it makes perfect sense having a Wii and an HD console... and if you can get both for the same price as a PS3 then it is that much more apealing.

That is just my thought...

I came here expecting a debate about which console is better.

I feel letdown

OT: They arent trying to catch up to Nintendo. That way lies madness.....

just because you say it doesn't make it true... if that were the case, I'd be a billionaire!