MS needs to offer a $249 SKU with a HDD asap. $299 for an Elite is the same price as a blue ray equipped Slim PS3 dammit.

They need to drop
$179 Arcade
$249 "Elite" 120GB

And even if they did that, still I think they would be crushed by a $299 PS3 slim in ww sales from here on 'til end of gen.

Judgement day is upon YOU! BELIEVE OR BURN IN HELL FOR ALL ETERNITY!!!!

Next week should be interesting.

Is Microsoft fearful or is Sony desparate?

Another holiday of Microsoft beating Sony will probably be the demise of the PS3 chances getting to second or top place this generation.

Microsoft can afford to "follow the rythm" right now because they are in a better position at this time then they probably thought they would be this generation (I thought 360 would be in last by now with a loyal following, instead it is second and the only console showing overall year over year growth). Sony, is definately in a worse position then they thought they would be (year over year shrinkage and third place in the generation). Sony is only trying to spur sales because they know that if they don't they are destined to last place.

It is a game of corporate chess and we consumers are the pawns.

MS is definitely respecting Sony price drop as a big probleme for them
that is why they are making their move NOW and focusing on the Elite to steal the PS3 power

I m not really affraid about the Elite price drop

I just hope Wii is gonna drop in price to CRUSH the arcade sales ...

Thank you...unless you change the entry level, swapping around any higher end models won't have *that* much of an effect. Remember when the 60GB PS3 got dropped from$600 to $500? Price of entry for the PS3 was still $500, and while people thought to theirselves "WOW, PS3 Price cut! YEA!" for a short time, sales eventually slowed back to normal because you still had to shell out $500 to get a PS3

Id say its the other way around, and has been the entire gen.

Sony are getting abused this gen by the competition, and are getting threats from publishers. They need to cut the price, and fast. Hence the fear, its nothing desperate... if it was desperation we would be seeing big games being rushed and not delayed (GT5 + GoW3).

Microsoft have proved that they will do anything to beat Sony, bringing out the console a year early with MEGA tech issues. Having to constantly reduce price to stay in competition (2 major price-cuts in 2 years). Hence, desperate to do anything what will stop or hinder Sony.

What remains now, is to see if MS strategy works... or if millions upon millions of people really have been waiting for the PS3 to be a viable price.

you know what the slimmer PSP did in Japan? Japan will be entering a new stage of HD gaming consumism with the PS3 slim.

How can you say Sony is destined to last place when they are outpacing X360 YoY by a clear margin?

The gap has only increased by 400,000 or so in 2009 despite PS3 being $399 and X360 even as los was $179 in some places of the world.

I say, MS is simply chanceless. X360 is the one destined to last place, sadly.

Good for them.