MSFT wants to own the living room. They don't know *why*, they just do. They think it might be important later. The goal is to own the living room now, and then later when smaller innovative upstarts create new ideas they can work them into the 360.

They don't care about profits. They will not only price match the sony cuts, if any, and will likely even beat it by $20 just for good measure and the press. Sony can never win this. No competitor can ever win against the bottomless pockets of MSFT.

That said, a $100 price cut and I would likely pick up a PS3. OR leave the price alone and put PS2 comp back in...

A $250 elite would help a little, but really for $50 more to get the new PS3 SKU I doubt it would help 360 sales that much this holiday. Microsoft's only hope is that Sony fumble and charge $350 for the new PS3 instead of $300.

Dodece said: Microsoft has done a fantastic job of lulling the media and the enthusiasts. After E3 Microsoft went into almost a silent running. Way below the radar. More to the point nobody has taken much notice of what Microsoft did not have at that show. Specifically most of their first party software. I think it is about conserving their resources and maximizing their impact. Perhaps Natal is farther in development then many suspect. The peripheral seemed to be entirely functional at their show. That may be Microsoft's answer to a slim PS3. We all know Microsoft loves to be a year in front of its competition. I think everyone reads the comments of development kits having been sent out as meaning next year, but that hardly precludes Microsoft having made some games internally, or having given some developers kits earlier. That may be what Microsoft is up to. Imagine the holy hell it would bring down in the press if out of nowhere in say September Microsoft announces the peripheral shipping with a game, and two more games announced for the holiday season.

i wouldn't doubt the hardware side of natal is complete,..i still doubt they will surprise announce natal for this holiday.  like you said, ms has done a good job of "maximizing their impact".  if they release natal this year and have only 3-5 game total for the first six months to a year natal is doomed to fail.  they need to build up a library so that can have 3-5 games at launch followed by at least a game or 2 a month for the rest of its life to keep consumers interested and motivated buyers.  the 2010 release date is really just MS waiting for third parties to join the bandwagon and maximize their impact.

hellonearth said: LOL@this entire thread. I Smell Fear

After reading all the threads you've started I think that smell is coming from you.

Slim will be a poor man's Arcade, believe me
xD

Slim is overrated.
Ask Britney Spears.

Infinity said: A $250 elite would help a little, but really for $50 more to get the new PS3 SKU I doubt it would help 360 sales that much this holiday. Microsoft's only hope is that Sony fumble and charge $350 for the new PS3 instead of $300.

I have to ask, and I'm not being a schmot-ashe, is it fairly well established and agreed upon by virtually everyone that the PS3 is more desirable than the Xbox360 and the ONLY factor that is causing people to buy the 360 is the price? I see this logic a lot, and I just realized that it seems like a huge assumption to me, but everyone puts it out there and nobody calls them on it. Edited to make a complete sentence. . .

Lord Flashheart said: Slim is overrated. Ask Britney Spears.

actually she lost weight again >_o.

The Xbox 360 isn't going to be losing software support anytime soon.

IMVHO, MS will use all its advertising weight to make its announcements look bigger on the media. Both with plain marketing of its products and using advertising money to persuade media owners and make them persuade their journalists. As usual.