Does Microsoft also drop the price of the 60GB upgrade for the shelves to $50?

it won't matter if 360 cuts the price by 50 b/c i 07 it was 360 350$ and ps3 400$ who was outselling who at that time the ps3

I don't think the 360 will cut the price in may though i think it will be after sony does there price cut since he is saying the ps3 will cut the price around E3 time my guess would be 360 does there price cut in Sept as they always do it then

Wii won't cut price in 09

Sony have an advantage on price cuts simply because the console is more expensive... to copy and paste what I've written in other posts:

"People do realise that there is a diminishing effect with price cuts, don't they?

Please realise that a drop from £200 to £150 has a much greater effect than the drop from £150 to £100. There is a reason as to why the PS2 is still £100.

Even if Microsoft does match Sony in price cuts (which I significantly doubt), the effect in demand for the Xbox 360 will not be as great as the effect for the PS3."

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"

No, what I'm saying is that the amount of people who found "Product A" too expensive at £200, and would pick it up for £150 is LESS than the amount of people who find £150 too expensive, and would wait 'till it dropped to £100.

If a box of matches dropped in price from 30p to 15p would sales explode? No, because the product is already really cheap."

Combine that with the sales effect of FFXIII and GT5 and their loss would be monstrous. I'm really beginning to doubt they'll cut price before 2010.

Would be sweet if ms drops the price of 60gb model for 50$. Two 360:s is better than one! I want another!

I cannot believe that some people still think that a price cut is relevant.

A $100 price cut on a 10M unit sales means another $1B of lost revenue. After reading Sony's $5B lose projection for 2009 how can anyone still think that a price cut is in the realm of possibilities.

If anything, I project a price increase for the PS3 - just so the per-unit bleading will stop.

IMVHO a $50 cut in middle or late Spring is possible for both PS3 and XB360 Pro, $100 as Pachter said for Sony is very unlikely, it would mean a very aggressive strategy, but a small cut for Sony to increase sales without losing money on each unit and a small cut for MS to increase Pro sales and keep 2nd place as long as possible could almost be an unspoken gentlemen agreement to resist better to Nintendo without making war on each other. Currently MS doesn't fear anymore a possible incursion by Sony in the living room computing, so a brief truce, with only prudent and not aggressive moves, to think each one to its own business, is possible.

i dont get how people think they "know" how much money a company is making or not? anyone who sais anything about it is just talking out of their ass. simple as.

@ solidsnake

well they are pubic companies and so have to provide detailed public accounts. of course we dont know at that specific point in time but from the quarterly figures we can get a general idea

Solid - You can always look at professional estimates that are given of console costs. Some companies exist to provide teardown analysis of eletronic devices so consumers (and investors) can know if a company plans on taking a hit for each device sold. iSuppli and Morgan-Wedbush are both very informative with that.

In business, it's critical to know those kinds of things - There have always been price wars related to the loss, or profit of certain electronic devices. Remember when Atari was going to sue Sony for price dumping when the PS1 came out? How about the arguments against the Commodore 64 that there was no way it'd sell that cheap for a computer?

And of course, you can apply Moores law, and other mathematical formulas to prices and get a good idea as to what companies are paying to build devices, and get good ballpark figures even not being an analyst.