So why did their previous consoles sell so much worse than the Wii? The same for other previous consoles from other companies.

It's still a rumor you know. We don't know if this is actually retail wide or a limited offer by walmart or even anything other than a rumor.

Also, how come there is no mention of core and elite prices on that thing? Sounds fishy.

Wait and see I say but if true it certainly goes against what MS just said by acting all confidant and saying they won't drop the price till they see a big increase in Sony sales. Unless two weeks was already enough to convince them :)

At this point changes in price to any of the three won't really change the result, that is Wii first, X360 second and PS3 third. You just can't beat a console that's selling out by a price drop alone, and Super Smash Bros. is going to sell as many consoles (but in a lower-profile way) as Halo 3 ever would.

I can't see $50 affecting sales much.  The word has gotten out to the general population (see the Today show) that the 360 is unreliable.  $350 for an unreliable product is not very appealing to most people.

I know I'm not touching it until its 1) below $300 and 2) the new "falcon" is released and is proven to be reliable. 

It will probably help to bring the X360 back to second place in USA in terms of weekly sales faster than it would happen otherwise, because one of the PS3 models recently got a price cut. In terms of total sales, X360 would remain in second place for a very long time anyway (after it's overtaken by the Wii this year).

Why not $100? Damn you Microsoft. I'm trying to go Wii60 and you aren't making it easy! Oh well, guess I'll take what I can get and buy one anyway.

$50? If thats it they shouldn't drop the price at all. $50 will mean little to nothing. A $100 price drop would have all but finished Sony in the U.S. market. If they are only going to do a drop of $50 they should throw a couple games in the package or something. We all know that the Core system doesn't count.

I do have to agree, $50 is a bit lame. Hey it's a price cut and that's nice. But the difference won't even buy you a brand new games these days.  

I have a feeling that while we are all wanting to give the Falcon credit to "fixing" the 360's multiple problems, there just isn't enough reliable info yet to bank on it.

The internet has been pretty good with rumors for MS as of late though. They did nail the head on the Zypher (aka Elite.) But honestly, I think the Falcon is further off than many hope. Simply due to the fact that they just recently released the Elite and they are even whispering about the Halo edition Box before Xmas.

If the rumors prove true, and the Falcon comes soon, personally that would only add another feather in my hat to be angry at MS. They apparently are wanting and willing to release higher end ( Elite ) versions of their faulty hardware when they know in their back pocket the solution to their problems awaits. That would prove to be a rather shyster-esque tactic on MS's part.

Even if they do happen fix all the problems, I don't think they will remain profitable with the Falcon for awhile, at least not in their price range, and especially with this price drop. There are still more faulty Xbox's to be sold and inevitably fixed. Especially with the boost in sales Christmas brings. MS will never stop having to fix the faulty hardware problem until the very end of 360's life and personally I think that is best case scenario.

If they only want to lower it $50 they should do a free game with purchase. Toss Viva Pinata, Dead Rising, and some other games on a list to choose from. Maybe a free controller instead or as well.

Toss in Viva Pinata since it sold badly and it appeals to families and casuals at least from the look of the game cover.