It is only $50.00 for the Elite, even though they would be below their HD competitor.

I thought it was $100.

Well, at that point they lose most of the advantage in terms of the careful shopper who thinks about their purchases for a long time, but they can still advertise it as 'the cheapest', which helps a bit still.

I'm talking about the Elite, and what kind of a difference it would make being $50.00 cheaper than the PS3, as opposed to being the same price.

This is why I think it is much better to be lower for the Elite.

It would hinder Elite X360 sales due to negative perception of price. People would wonder why the X360 is so cheap and notice PS3 comes with Blu-ray.

That's why PSP Go! is so expensive :D It can't "look cheaper" than an iPhone or stuff.

:p if that were true, sony wouldn't be behind by all those millions

You are joking, right?

He is actually right, Did you know that Nintendo was originally going to sell the Wii at the initial "sweet spot" price of $199. They realized that the perception of price difference between the other consoles would make it seem like it was a lesser.  So they threw in Wii Sports and raised the price up $50.

I think the only "effective" price cut at this point would come strictly from the Arcade model. My guess MS is going to push a really sweet bundle this year.

And my gut feeling is that the bundle will involve Batman.