You really think they shifted anything? I mean console will have a boost for a month or two cause the console is new and fresh but then it all comes down to games.

And its not all about exclusives too... a lot of multiplats have sales advantage on 360 too...games like MW2 and assasins creed 2 and Lost planet 2...not to mention Dear Rising 2.

FF13 has PS3 advantage though. I see the console sales being even by the end of the year...but 360 has an 8 mil lead.

To be fair, this is Sony's answer to MS price that happened last year, but you know Sony delays everything 1 year.

I don't think Microsoft can keep undercutting PS3 on price. Once Natal comes into play they will be losing money if they cut too low now. unless they want to raise the price when natal comes out.

Maybe so my freind but a coo has taken place imo.

2 major pricecuts in the space of what... 18 months maybe? It sounds VERY desperate to me.

Either very desperate, or very stupid. 
Stupidity- When they could use the likely sub-£100 pricetag for Natal launch and probably ensure its success.

Bolded- Fair enough. It probably wont calm down, as the PS3 sales from here until Christmas are likely to be rather huge.

The Wii just need that Black version, MS will get beat for a while until they lower their Arcade to $150, but still its cheap enough anyway. face it, it's like last year but different consoles, but both MS and Nintendo can afford to lower prices, while Sony couldn't.

Exactly.  MS makes profits on all 360 SKU's except a small loss on the arcade.  If MS does a redesign of their own and cuts the CPU/GPU down to 45nm like planned by the end of this year, they could easily sell the arcade model for $150 and the Elite for $200.  That'd be plenty to beat the PS3 up until the coming of Natal next year and Sony's motion.  As I said earlier, Sony's motion to be bundled with every console (to get maximum attach rate) would cost them near $60-100.  For MS on the other hand, all they need to include is the new Natal all in one device with every new 360 which would only cost them about $50.

They are still losing on the console, but how much we do not know.

Their games division however as a whole is profitable. If I read this right that is.

http://www.vgchartz.com/forum/thread.php?id=83437&page=1

You mean dropping $100 over the time frame of 3 years? One $20(arcade)/50 cut after 2 years and a second $50/80(arcade) cut a year later.  Yeah SOOOO desperate.  The PS3 on the other hand has now dropped $300 in less than 3 years... hmm... Sony must be desperate with all these price cuts and early remodelings!!! Oh wait, we all knew that already

I never said they were stupid.

I said they would stupid be if they did what you said.