It's funny to see him attacking Sony, though. I've seen Sony do the same to Microsoft, with similar jabs ("We don't buy exclusives.") They really are attacking each other so viciously, spending so much money on this competition... it's amazing how much money both sides are losing right now. 

Red ocean indeed.  

I think the problem comes from the fact that M$ and Sony have introduced this rediculous idea of multiple versions. In my opinion, I agree with the idea that this isn't actually a price cut, but thats just me.

Whats the point of the 80 GB version? Do you think 20GB is worth 100$? Why didn't they just make the 80 GB version 500$ and get rid of the 60 GB entirely? That would be a price cut in my opinion.

Instead, what I see is this: The 60 GB is old news. Sell it at 500$ to clear out stock since we're going to mostly produce the new 80GB version with no EE etc...which we're going to charge the same 600$ for. So if you buy the expensive version, you get 20 GB extra storage...but at the same time you lose out on some of the hardware bits right?

Not to be pessimistic, but who wants to bet that the 80 GB version costs less to produce than the 60 GB version and that they'll stop making the 60 GB version entirely and just sell it until stocks are depleted?

If you look at a price cut of a console as a means to make the console more accessable to people the PS3's price cut was meaningless because people who can now afford a PS3 at $500 could have already bought a PS3 at $500 ... The population of gamers they were targeting with the PS3 has not grown, but it now may be a more reasonable system to these people.

here logic.

What cost 600 not costs 500, thats it.

I just said something similar in the "Sony-what price cut??" thread. You managed to word it more clearly IMO. NJ5 is correct. The PS3 didn't recieve a price cut, the 60GB model of the PS3 received a price cut. The cost of entry remains the same to the consumer. You need the same amount of money now that you did in November. You are just getting a much better deal now, but the minimum cost of entry is still $500.

I guess that makes sense, perhaps I did too much research before I bought it.

Speaking of jabs, did anybody catch what Phil said during the conference? I was something along the lines of "We don't have any of those size limits for our downloadable games".

I think if Microsoft had at least had a hard drive on the Core, their size limit and memory cards could have been avoided (well, memory cards would have just become a luxury to take things to another 360 at a friend's house).

 Well hang on, there is the Motorstorm that is bundled in with those 80gig systems. But yea, $40 for 20 gigs and no EE? I think we'll have to see what'll happen after the 60gig stock is finially gone. Will the 80gig price be dropped to $499 once the 60gigs are gone? 

oh yeah, forgot they were giving away a game. Though the pessimist will say that costs them nothing in the long run anyway =). Pack-in's add value to the customer though.

Their backstock of 60GB machines will probably last through Christmas, so by the time they run out Sony's going to be ready for another pricecut... 80GB model to $500. *sighs* Sorta hoping they don't discontinue the 60GB model completely.

Sorry, I swear I didn't copy your idea ;) I just posted a link to this thread on that one, thanks!

And I hereby put that text above in the public domain, feel free to use it in other threads or forums :P