@nightsurge.

Yep, its been a well known fact they fucked up and have been desperate to get back where they once were.

You know, people kept arguing that the introduction of the 40GB at $400 which was originally set to replace the 20GB was considered a $200 price drop.

So with that thought in mind, 360 had a $179-200 price drop.

Elite from $479 to $300 and Pro from $400 to the Arcades $200.

Granted it's not $300 like the PS3, but as a consumer I could care less.

Ah cmon kowe I meant coup and you know that.

I would be the first to aknowledge that if it was not for MS PS3 owners would be paying 20 bucks a week for on line and still playing shitty games.

MS gave them the kick up the arse they needed.

But hey if Man City win the premier in 2008 does that give them the right to sit on there laurels?

You know what I am saying.

I use Man City as my bro in law supports them poor sod.

And maybe you do lol.

hell ya, the best turn around in a very long time. ms does not have a move, they cant lower there price, they are already loosing to much money. psn is free, and now its as good as live. bluray, for movies and game storage , built in wifi, 360 cost another 100.00 bucks,  ps3 has a web browser, ps3 controllers are better, and they charge with out spending more money, 360 controllers suck, there d pad is a piece. i cant even play burned dvds on my 360 . my ps3 plays anything i through in. im on my 6th 360, my original ps3. new ratchett and clank, killzone 2 , uncharted1, uncharted 2, god of war 3, MAG, final fantasy, an exclusive, valk cronicles, res1, res2, big little planet, infamous, heavy rain, just to name a few ps3 library smacks 360, what do they have halo3 odst, wow  come on guys its old now, move on , try somthing new, stop holding on to the past. the bottom line . if you are a gamer you want a ps3, its reliable, and a far superior machine. this is sonys time , and the loyal sony gamers.  just play!!!!

I don't think it is game, set, and match as suggested. We have just experienced another change of momentum this generation in the race for second place. I find it hard to believe that Nintendo cuts the price of the Wii in the next 18 months. I really don't think MS's next move is a price cut, except for the rumored Elite at $299 and the discontinuing of the Pro. I think both MS and Sony will stand pat after the Elite cut through the end of next year. Also, I believe Sony will consistently outsell the 360 during this period. I think MS's next move is a .5 release of the 360 with Motion. I think they will release Natal with a slightly improved 360 (double memory, improved GPU and CPU). This will allow MS to claim a victory of sorts for this generation and also be the first entrant for the next generation.

I think that both MS and Sony have the luxury of releasing .5 consoles next generation, with the Wii facing the task of dragging it's massive install base into the HD generation.

I hope this really works for the PS3 or else there are gonna be a lot of suicidal ps3 fans out there.

As for MS making profit or loss on each 360 sold doesn't really matter. Dropping the price only takes away more revenue regardless.

Dropping the price didn't help MS against the wii because the wii was already affordable.

But for some strange reason it is going help against the PS3 (that is better equip with wifi, BR etc.,) now that it too is affordable? Strange logic.

Contrary to what many believe I think the PS3 did remarkedly well considering its price.
What more now that it's affordable.

Now all the consoles are within the price range of many consumers I really don't see how a price cut is gonna help MS/Mintendo. It didn't help the Gamecube last gen and the wii is a much stronger beast.

It now comes down to natal and how PS3 (and to some degree Nintendo) deal with that.

The Natal Camera isnt a cheap piece of hardware IMO. It has 2 camera's in it a depth sensor a multi array microphone and a custom processor and saftware built in. It's just my opinion but I'm thinking it is going to be more than 50 dollars. And how Microsoft likes to make expensive peripherals i would think an item like that would cost more than a WiFi adapter that they charge $90 for.  But i'm not a Microsoft employee and it is all speculation at this point.

I think we should wait before ANYBODY says anything.