Thats what I thought but then someone pointed out that to make the 20GB drive for MS would cost more than making an 80GB due to the fact that 20GB HDD's aren't in demand anymore so they have to be built specially for the xbox and that drives the cost up.

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Nothing to see here >_>

without a pricecut? Would you like to make a sig bet?

With a price cut of course, its pretty obvious that if the PS3s price is cut then so will the Xbox 360s price. Sony gave away a lot of their gameplan with their predicted sales for the coming year. Also no I would not want to make it a sig bet, I've already made a thread about it and thats enough for me.

That's a strange assumption. When PS3 lowered it's price in 2007 it outsold the 360 pretty consistantly for nearly a year before MS dropped the 360 again. The same can be said of Sony of course. They have yet to respond to 360's price drop from last year. Going by these trends it seems more likely that the 360 will get its next price drop in fall 2010. 

Why is it a strange assumption? I have data which shows greater relative Americas sales during the holidays and I have seen the PS3 barely edge past the Xbox 360 during 2007 holidays when it had the big price cut to get the whole train moving. Yet from the relative performance during the holidays people were shocked to see the PS3 greatly ahead of the Xbox 360 at the start of 2008. Look at the graphs, the Xbox 360 always does relatively better than the PS3 towards the end of the year and the PS3 always does relatively better than the Xbox 360 towards the start of the year.

Also the Xbox 360 is profitable, if you read between the lines of the financial reports with 3 data points you can see that a lot of the revenue of E+D is due to the Xbox 360 but not nearly all of the expense. They can afford to drop the price if they so chose, and since they stated previously that their goal was 2nd place this generation you can believe that they will cut the price.

It still amazes me to think that if you were able to go back to 2004 and say "in 2009 the PS3 will be getting outsold each week by the XBox360 and it will be ahead in WW Sales" you would have been laughed off of the internet - although the same could be said for Nintendo but it shows that Microsoft has really cleaned up this gen and have helped break the PlayStation dominance on the market. I actually find it kind of funny how badly sony has screwed up this gen - but the awesome thing is it is good for gamers because Microsoft has actually had to come up with (or buy) some really good games and sony is too to try to get some marketshare back so it's good for gamers all around.

MS still has 9 billion to go before they make a single cent on the xbox brand. I'm not saying Sony is in a better position financially but you're going off on a tangent. My question is if they waited a year to respond to the 2007 pricecut, why would they do an immidiate response in 2009 when they aren't in as strong a position? Don't equivocate I'd like some sound logic.

I think if Sony drops the price to $299, MS will wait and react accordingly after the PS3 starts outselling the 360 consistently, by that I mean they'll drop the arcade to $179, the Pro to $249 and the Elite to $329 or something like that.

Wrong.  That must be referring to the numbers that presume that every $ lost since MS FY 2000 was a dollar lost by the Xbox project.  Not to mention those numbers dont match the financial reports on Microsoft.Com.  MS also has stated they will drop the price of the 360 when Sony drops the price of the PS3.  Why did MS wait nearly a year to counter the PS3 price drop. Well because the PS3 price drop barely dented the 360 lead and MS wanted to make back some of the RRoD money that was set aside before they dropped the price.