I'm still convinced that Sony can't afford to drop the price $100 a unit with the state of Sony Corp. as a whole and the way Japan's economy is versus the world. In some ways, Japan is worse off than Europe and North America, and they aren't going to risk the financial health of the entire corporation on increasing PS3's market share.

They're just not.

I think they know a $50 won't do much and $100 is flatout dangerous, so they are going to try and bundle stuff to death and up any specs that they can do cheaply, like hard drive space, and they are going to hope the games can pull them through.

Silly you. The match won't be a dollar amount; it'll be a percentage.

$100 off of $400 is a 25% drop.

With the 360 being available at $200, to match the same percentage change, they'd drop $50, rather than $100.

A $150 Xbox 360 would be a very competitive price-point.

And from here, they'd drop each other SKU by $50 as well, most likely. Not only would this compete fantastically against the PS3, but it would put two 360 models as cheap as (or cheaper than) the Wii.

Microsoft I believe will drop the price of the 360 this holiday season by another 50 bucks

arcade 149
pro 249
Elite 349

when this happens 360 will outsell ps3 and possibly the wii my prediction

I predict sony will drop the price of the ps3 by 50 bucks as well

349 cheapest for ps3

Well it would depend on if the Wii drops the price as well.  If Xbox does drop the price and the Wii doesn't then it will atleast be more competitive with the Wii.  But I don't think it has the mass market appeal of the Wii just yet.

Wii doesn't need to drop it's price, unless Nintendo starts to see a significant decrease in sales.

I also still don't believe the Wii would be outsold by either 360 nor PS3.  Wii is just too strong and with reports like "Obama allows Wii into Whitehouse", you can bet your butt people see that as a confident thing.  Also, it's free advertisement for Nintendo.

Now if Obama said 360 or PS3 were allowed into Whitehouse, holy mama would that create sales out of no where.

I don't see Obama endorcing the Wii doing much impact.  Yes it will give a little more free advertising, but overall it won't make a difference even if it had been any other console.

There are A LOT of gullible people in the US.

Microsoft I believe can drop the price by 50 bucks this holiday season, they will probably drop the price around september like they did last year or maybe october, and still not lose money in their game division like some believe, by the end of this year microsoft should have 25 million people on xbox live, the profits from xbox live subscriptions, purchases, xbox live ads, and profits from game sales will cover any loss on hardware.

Microsoft is in a great position people, Xbox 360 is poised to have the biggest year ever.

Just watch and see.

A 100 price cut on the PS3 is suicide at this point. Sony are predicted to start turning a small profit on the PS3 this year, but it would be nowhere near $100. They have lost too much already to become profitable and start losing again right after.

MS on the other hand should be smelling blood at this point. They are an aggressive business and I would expect aggressive response to a PS3 price cut. Everyone thought the arcade pack was the most retarded thing ever, and now look at it. MS makes moves based on the future even if they seem detrimental at the outset.

Like someone said, MS is better off to fight aggressively now and gimp Sony to a point where there is no longer a fight during the next round of consoles.