So, now that the PS3 pricecut is official let's talk shop.

Since launch both the 360 and the PS3 have reduced prices by 50%. While the Wii is still at its launch price.

360 and PS3 saw surges in sales with pricecuts in the past and obviously PS3 will see a surge with this one. However, in both earlier cases PS360 sales returned to 'normal' sub-100k weekly global levels eventually. While the Wii has never been that low, ever.

So, I have a few questions?

1. How will MS respond. We all are pretty sure there will be a discontinuation of the Pro model and the Elite will go to $299. Is that it and will it matter since the overall price of a 360 remains the same?

2. How will Nintendo respond or should they? They have been largly unaffected by these cuts and still sell much higher than both consoles, much of the time beating PS360's combined sales.

I say MS will put prices at $179 and $279 for arcade/elite respectively and this slightly increase 360 sales through december. However, PS3 will out sell them.

I say Nintendo will do nothing *unless* Wii sales stay at current down trending pattern. Then *maybe* in Nov with the release of NSMBWii there will be a $50 drop.

Now Nintendo is forced to lower the Wii price at least $50, better $100. Wii cannot cost, at least ethically, almost the same as an HD console with Blue Ray and a 120GB HDD.

As long as the wii will bring them money we won't see a price cut for the wii, we got to remember that the wii as surpass anyone expectation, maybe nintendo didn't even think the console would sale 50 mill lifetime so unless we see a big drop I don't expect any price cut

Well, if the wii continues to outsell the PS3 through holidays and remains 2x the PS3 levels, why drop the price?

1. Well we already know how MS has responded by putting the Elite at $300 to keep their high end sku at the same price at Sony's lowest one. I doubt they'll have anything else but hey I'm up for surprises.

2. I'm not sure about Nintendo. They obviously have known this was going to happen and they know their sales have gone down as of late. They might feel price may be a part of that issue and if they didn't then Sony may help to show them that. I think many are feeling they'll announce a price cut at their usual fall conference and that seems likely now.

i have a hard time figuring out what is ethical about it.

Things are about to get interesting...

@ superchunk

The problem is that without the new PS3 model and price cut Wii sales are already dropping incredibly fast, about a 50% YOY and they won't meet forecast that it is the most important subject for Nintendo.

Wii is looking very overpriced now.

it all depends on what happens, does the PS3 slim steal market share and erupt in sales? Will it just boost it a bit then go back down to low demand? It really depends..