If Sony cuts the price of the PS3 to $300, Microsoft can cut the Xbox 360 to $150. That match up is even /more/ favorable, in my opinion, than $400 vs $200. And MS loses half as much as Sony.

at this point microsoft aint worried about sony

sony is the one with all the problems right now from all the news I have been hearing

microsoft have simplified their business and it will work out fine for them

Windows, Office, Xbox and Zune.

All those platforms are doing well at the moment

microsoft are sitting pretty

I'm not going to read all four pages but there are some definite cases of reading comprehension issues on the first page. When Microsoft

"He tells Edge Online that Microsoft is planning on its console competition becoming more price competitive in 2009. Not really his call, obviously, but failing to plan means planning to fail, right?"

All they're saying is that they expect the PS3's price to drop and thus become more competitive. They're not saying that they'll drop their price again if Sony drops the PS3's price. They are not saying that at all.

I wonder how Sony got into this mess with those A++ analysts they have?  The simple fact is Sony is running around like a chicken with its head cut off.  It doesn't exactly know what to do next and they are in full blown meltdown.  They need to fire a lot of their upper management and hire some new people who can get the ship in the right direction.  Will they do this?  Who knows, but if they don't they are in for a world of hurt and the Company itself is at stake.

its pretty obvious that Msis trying to keep customers from buying a ps3 in the light of a possible price cut.

Huh? What exactly are Microsoft planning then? We plan that our competitors will drop their price and our plan is to sit here with our thumb up our ass?

You're right they're not saying that, but what they are saying is that they're planning their retaliation to said move from Sony, which could be either a price cut of their own or adding value to the current skus.  Regardless of what it is, they are announcing that they will have a move ready for such a moment.  They are attacking them psychologically to scare them out of making a move.

Basically put, the high price of the PS3 just goes to show that there's a reason consoles have always been behind PCs in terms of graphical power - there is such a thing as "overpowering" a system and making it too expensive.

Sony will try to drop the price, but I doubt they'll be able to that far. Meanwhile, Microsoft will likely still drop $50 either which way.