After seeing the whopping $600 million loss Sony's gamming division took in 2008, I gonna guess that a $100 price drop off the Xbox 360 pro will come first. What do you think?

Its possible too that the PS3 price drop comes first because They are quickly losing marketshare

yeah, by 10k per week, lol.

i think it will be the PS3 first. Xbox is selling good. no reason for M$ to cut their profits just when they are finally in the black. They will drop after the PS3 to take the attention away

microsoft typically reacts to sony's pricing. They typically don't drop price unless sony does something first.

easy a 300$ ps3 the pro will only get a 50$ cut this year if that i belive the ps3 will have a price of 300$ this year

i wouldnt have all that stuff in my sig if i didnt think they would happen

I think Microsoft is the most likely to do it first because I think they have the most to gain. They can stand to break even on the Hardware because the software division of the company is profitable and the likely reason they recently made the elite version more marketable (halo 3 and Fable 2 edition) is to balance an upcoming price drop on their lower SKU's (it helps raise the average selling price.)

I think we are likely to see a price drop from all 3 manufacturers this year, my predictions are

Xbox 360 arcade at $150, Pro at $250, and elite at $300 ($300 elite partially to force Sony down to $300 for larger losses)

Sony PS3 current 80 GB goes to $300 to get phased out
then replaced with the 160 GB at $300 for the holiday season
and then a new backward compatible SKU to be added at $400

Nintendo Wii I think they will analyze their pricing this year but they will be the last to do it, if the other manufacturers have a lot of success with their price drops they will drop to $199, if SONY and MS aren't posting large gains Nintendo only drops about $30.

Ps3 first with MS soon to follow to steal the thunder from the ps3 cut.

Will happen at the same time.

If Sony cuts their price/releases a slim MS will counter by just shoving a 40-60GB HDD into the Arcade, thus making it the new base package.

A 40-60GB HDD probably costs MS like $10-$15 at cost if that. That's a lot easier to take than another $50-$100 pure price cut. 

I would agree with you if it weren't for the fact that they have gone through all the trouble of redesigning the XBOX to include internal storage of 256MB and quit shipping with the memory card.