Microsoft is likely more concerned with their non-existent game lineup compared to PS3. MGS4 Vs. GeoW 2 = Consoles selling even despite PS3 costing twice what 360 does. Killzone 2, MAG, Infamous, Uncharted 2, Vs. Halo 3.5= The beginning of the end for 360. Unless, that is, they drop the price again. To $100 perhaps? I'll get one at that price... Maybe?

u know the whole funny about this crisis is that in order for people to end the economy crisis we need to spend to keep the economyh growing however nobody wants to spend money they would rather save their extra money after essentials are purchased, so yes this would suggest that cheaper games would do better however i dont see this affecting established franchies like god of war and gran turismo since consumers will know these games will give good value for their money, perhaps new franchises will suffer the most plus yes for most of the year hardware sales will be decreased, this may even lead to a wii price cut next year to continue strong sales, and a ps3 price cut is inevitable if sony want to put up a decent fight next year. however this wont happen till about spring since sales should remain high with january sales etc.

Oh, snap. It just occurred to me whose alt you are.

MS is prepping the stockholders for their games division losses for this quarter. They seek to blame the economy, rather than their pricecut strategy, even though they know exactly what they're doing.

The aggressive price cuts put MS at a fair loss on each unit sold. I hope no one seriously thinks that 360 CPUs and GPUs grow on trees.. the X360 isn't cheaper to manufacture than the Wii, yet it sells for less. A lot less.

MS is literally buying marketshare. They don't want their stockholders to freak out on them with the quarter's results -- they need a scapegoat for the losses, so the stockholders can "feel better"... even though, IMO, buying marketshare is exactly the right decision at this time. They are just worried that stockholders will not agree (and rightfully so -- the stockholders don't understand the market in detail).

@Groucho

Your supposition is highly debatable. Microsoft was well over due for this reduction in price point. I think most posters would agree that the new price point is probably in line with production costs, and even if it were not for the low end model the profits gleaned from the higher end models which are only marginally more expensive to produce would far more then cover the losses. Even Live has probably covered its development costs by this point.

I seriously hope that was sarcasm.

MAG - no release date yet, probably not until 2010 or later since it only had a CGI trailer at E3 08.

Killzone 2 - all hype, no install base.  Probably outsells resistance 2, but not by much.

Infamous - ....

Uncharted 2 - may sell over 2 million LTD like the original has so far, but not a system seller.

The 360 has Halo Wars and Halo 3: ODST in 09 to please the Halo crowd, then a plethora of other games (including Multi-Plat) like APB, Cry On, Star Ocean 4, HAWX, Resident Evil 5, Bionic Commando, Fear 2 Project Origin, Alan Wake, Red Faction: Guerrilla, Ninja Blade, Prototype, Alpha Protocol, Final Fantasy XIII, Rise of the Argonauts, Fight Night Round 4, Dark Sides: Wrath of War, Defense Grid: The Awakening, The Godfather II, and many unannounced titles.  Some of this list may not come out in 09, but many will.

just a few comments here: #1. we don't know what part of the MAG trailer was CGI or no (the part in the fort was definitely CGI, but the first part looks bad enough it might have been from a build of the game). Other than a PSP game, the devs haven't released anything for nearly 3 years so MAG could definitely hit in 09.

#2. If you think KZ2 won't sell consoles but you count HAWX (a multi-plat title btw) as a good game for the 360, you need serious help

#3. only 3 of the games you mentioned after the Halo ones are 360 exclusives.

#4. you mention FFXIII (a multi-plat I might add) as a possible 09 game and yet you think MAG can't possibly release in 09? wth?

Also, the PS3 is definitely getting a price drop in 09. And that is 100% certainty. The 360 might, but it also might not. I can guarentee you a PS3 @ $300 will sell like crazy, if only because of the BD player.and also remember GOWIII. that game will sell consoles....

I'm not saying the PS3 will destroy the 360 in 09, but you've got to remember that momentum has already shifted twice in the 360 vs PS3 war (11/06 - 11/07--> 360, 12/07- 9/08 -> PS3, 10/08 - present --> 360). It will eventually shift back to the PS3.

i think with its $199.99 price point it will be fine. if the economy stays bad long enough , then we will probably see less ads on tv and more in mag's. also if the economy stays bad , i dont think sony will cut the price of the ps3 anytime before summer at least, to compete with the 360. overall things could get interesting in the gaming industry next year.

Shane is talking about the industries outlook for 2009, not just the 360s.

I think we will see a number of developers go broke in 2009. Hopefully the big publishers pick up any lost franchises.

in this m$ damage control over gran turismo 5 announcement for 2009? XD