Microsoft usually just lets Sony stick a foot up it's own ass... but they are getting their collective shit together so Microsoft may be ready to counter any slim model or reduced priced unit

Marketing is Microsoft's friend they will exploit the new features leading up to Xmas. We have a lot of stuff which I believe they will market in a consumer friendly way.

They have a number of options and how they deploy them we do not know yet. They could rejig the line as rumoured they could make another big dent in the price they could have something we know nothing about.

It is a fool who underestimates his opponents.

Microsoft has been extremely successful at countering sony throughout this gen, so I doubt they'll suddenly lose their edge now.

^This

Speculation about speculation about speculation. Gotta love it.

If Sony drops the price in September 2009, MS should drop the price by September 2010 at the latest.

In the short term (less than 1 year) Sony are completly harmless.

LOL@this entire thread. I Smell Fear

Sony will be a force if they cut the price(not sure a slim means anything to consumers), so MS will need to do something. I think they said a while back that if Sony makes a price cut move, they have ways to counter, and not necessarily price either.

In 12 months from now, the Xbox360 will be at 40 million consoles sold. This is enough to guarantee 3rd party support at its best. The Xbox360 is very good at selling software and digital content, publishers know that. So, you won't have to switch to the PS3 unless you want Sonys 1st party games.

I don't know how MS wants to counter, but I guess, they will make it. Some new SKUs with bigger HDDs, a $50 pricecut for the pro / elite might help, make some coloured Xbox360s or whatever.

I really think if MS advertises the new features like Facebook, Twitter and Last.FM + Netflix well, they really have a shot at a successful holiday season. There is NO doubt that Halo ODST, MW2 and Forza 3 will do awesome things, but these features + Guitar Hero, Rockband, 1vs100 and Lips MIGHT touch some (female) casual gamers.

There's the answer. Microsoft needs to get Muscle March HD for the 360.