Another option is this: If they know a PS3 pricecut is coming, cut the price first. Make them follow rather than let them lead.

If they say cut the prices to $175, $250 and $300/350 they would still keep the premise of the premium being $100 cheaper and the Arcade being half the price compared to a PS3 cut of $50.

So you honestly think that Microsofts goal is to crush Sony? This is business not childs in a sandbox. Microsoft goal this generation is to establish them as a force in the console industry and make money on it.

Xbox 1 was a failure but at least they entered and gained experience and learned from their mistakes. The goals are obvious, try to get the biggest software support and focus on cost controll (bad quality of the 360 is an example of that).

So true about MS.  They have always been ruthless with their competitors.  No mercy.  So much in fact that antitrust laws have been thrown in the company's face due to their past dominance. 

Of course money is their number one priority, and throwing it away on trying to get the upper hand seems rash, but they like Sony know that the gaming business is where the cash is at.  The current hard fought battle will have major implications in the future.  The larger the share of the market the more money they stand to make, and the better positioned they are to establish themselves in the next gen.

As for the Wii, Nintendo took a huge gamble. They knew what they were up against and decided to compete on a different level.  It could have blown up in their faces, but it didnt.  So theyll just go on making their money.  However, with Sony and MS their high end consoles and big development costs have put them in a difficult position.  They need to fight for the scraps that the Wii has left in its wake. They both realize this. 

why ps3 fans always thinks that ms could not do another price cut, MS already profitable, have continues stream from Xlive, they certainly capable of doing another price cut, and continuesly lowering the cost.

MS now just waiting PS3 to do another move, if they doing a cut, they can do it too.

but i believe i won't happen, because Sony as a whole is in doom and gloom mode.
it can not do price cut for ps3.

My discussion was not about "Wii winning".  Remember, I referred to such things as only important to fanboys.  The fact is that the HD market is smaller than expected by most.  This is a side effect that of the Wii's large marketshare that has to be understood as more than "ohhh, Wii winning!!!".

{{And whilst you are right that Soony are content to Gamecube it this gen, I do not believe Microsoft are.}}

By your above quote, I don't believe you do realize how the Wii marketshare affects the potential of the other consoles.

{{Their goal with the xbox was to establish a breach, their goal with the 360 was to poo all over Sony.}}

??? 

Console sales is not like playing HALO/BRAWL/RESISTANCE and screaming "I win! I poo'ed all over you", it is a business.

Please see the seperation between you playing games and companies selling games.  It's not even remotely the same.

Why assume the PS3 price cut is coming in Spring (they've repeatedly denied it, while only a few unlikely rumors back it up)?

Second, I very much doubt the cut if it comes in spring will be $100 (if it is, it basically means no further cut for all 2009). So if it's $50, which if there is one at all I think it will be, that brings PS3 to 349, and I dont think that will have any big effect.

I dont expect MS to cut again anytime soon. Come on people, they just got done cutting in October. It will be fall 09 at the earliest (and I think the next MS cut may be small, especially on the Arcade which is already very cheap). I could see the next MS cut being 30/40/50 Arcade/Pro/Elite.

MS wont react unless they really need to, and a 50 cut to PS3 wont make them need to.

"By your above quote, I don't believe you do realize how the Wii marketshare affects the potential of the other consoles."

Wii market share will be lower than the PS2's market share, and the industry will have grown. I don't see why the PS3 could not start making a decent profit


"So you honestly think that Microsofts goal is to crush Sony? This is business not childs in a sandbox. Microsoft goal this generation is to establish them as a force in the console industry and make money on it./Console sales is not like playing HALO/BRAWL/RESISTANCE and screaming "I win! I poo'ed all over you", it is a business."

Yes, Microsoft reps have stated that they were attempting to pull down Sony's dominance of the console market. Get your Google on before you hit that reply button. Obviously money is the long term aim, but it's more complicated than you are both believing. Consoles are starting to threaten the PC - PS3 and Wii can both browse the net as an example. MS does not want another competitor to windows, and that is the main reason that they established the xbox line (and Zune was an attempt to stop Ipod owners buying Imacs)

And yes, MS do plan to make money off the Xbox, they actally are at the moment, and I believe will continue to do for the rest of the generation. But they will continue to price cut as aggressively as they can, to maximum future profits.

And at that point, the discussion ends for me.

Cut the price to $99.99

Yes im so sure they would do it if they start loosing some market share to sony.