I dunno what to say about it really, people are becoming more price concious and this generation is expected to progress far into the next, probably more than the PS2 continued did in this generation. That means that increased sales now will lead to prolonged profit later and with services like Live building up an online community they would essentially be buying support for their next generation console as well.

Yeah, this is entirely possible. It all really depends on what sony does. If they start gaining momentum again and start beating ms in monthly sales...the price hammer will fall again.

yes its just business

Dollar is expected to weaken more against the Euro on the long-term. So you can expect another price-drop in Europe I guess by around 20 euro's or something! Because Microsoft is an American-based company. I guess an American drop is at hand also if the X360 starts selling the same as the PS3 again!

It's amazing the Arcade is allready significantly cheaper than the Wii (and 1/3 the price of a PS3) and bundles with several extra games. The Wii is totally destroying the PS360 in sales though and making a good profit at the same time.
Are MS desperate to hold back the Wii from reaching 50% and keeping their own % from falling down towards 25%. ?
When Wii reaches 50% software developers will en-mass drop priority from PS360 console games and shift primary games development to the Wii platform where the $$ are. Once Wii gets stronger support from the SW developers then 60% market by 2010 will be on the cards. But i think MS would have to pay people to take their HW to hold back the Wii, the only extra X360 sales MS seem to get from their lowered price are from would be PS2 and PS3 sales. !
Wii sales are increasing almost completly un-affected by this. It's clear old-generation (PS2 & PS360) consoles just dont appeal to people like the next-generation Wii does.

Might get a 360 for a present for my brother if this does happen! 150 has always been a nice price for a console imo.

I don't think so, that seems too cheap. At $150 the arcade would sell so much.

I think there won't be a price cut until either PS3 starts catching up in sales or PS3 gets a huge price cut.

After waiting so long to drop the price I'm positive the price-drops should come more often now. Im hoping they create a slimline version next year but I guess thats more of a pipedream then anything.

They must be a little careful. Excessive price cutting when not in response to competitive cuts can be seen as a sign of weakness and cause a decreased value in perception.

In fact I think MS hurt themselves already by becoming cheaper than the Wii without improving their position.