Or call them small, ungenerous or whatever. U get the point.

Sony $200 price drop in three years out on the market.

Nintendo only $50 drop in three years.

MS only $100 drop in four years.

The HDD probably costs MS somewhere around $50-60.

MS has stated recently that they lose money on Arcades, but make up the difference with the first accessory sold. That would put the cost of the Arcade models just a bit over $200, to MS.

The HDD accessories are ludicrously profitable. If you were MS, would you:

(A) Cut the price of the Arcade to $149.99 and the Elite to $249.99, making the arcade cheaper than a PSP-3000 or a DSi, and increasing your losses / unit by a raw $50 / unit, especially if the Arcade is popular, or...
(B) Just cut the price of the Elite to $249.99, decreasing your profit margins, but being $50 cheaper than the PS3 slim, losing $50/unit just on sales that may have otherwise gone to the competition. ...and not looking like your hardware is old/cheap enough to be sold under the price of a handheld like the DSi?

IMO, the Arcade model may get bundles, but it will NOT get cheaper for at least another year.. and it'll get priced at $179.99 or somesuch, not $149.99.  The number of cost reductions remaining, with hardware, in the unit are nearly tapped.  Some items, like the DVD drive, case, etc. just aren't going to get cheaper.  Only the CPU/GPU will, and not by a landslide.  The HDD on the elite is one of the most profitable accessories, and thus, its also the most likely place to receive a cut for reasons of competition.

Damn a $150 price cut on one SKU in less than a year? I don't see that happening, and why would they test the market with a 250GB 360 bundled with the biggest game this holiday, their test numbers (results) would obviously be loaded due to the fact that it was bundled with the "the biggest game of the holiday."

This guy just pulled this out his ass for attention.

The main reason why Xbox 360s have been sold in the past is that it was significantly cheaper than the PS3. However now that the PS3 and Xbox 360 Elite is priced the same, the PS3 looks like a better deal due to the many options (blue-ray and wi-fi) on it. 

It is also important to note that Sony was already pushing themselves to the edge by releasing the cheaper slim, especially since Sony's gaming division have been in the red for a while. Microsoft on the other hand have profited in the last two years(though not too significantly) and have more options at their disposal. 

MS wants you to believe you get 100$ off the 360 by decresing the Elite price from 399 to 299. However,the new Elite is just a PRO with double the HDD capacity.

MS is very smart. They have the software this Xmass (Halo 3 ODST,Forza 3 and GTA 4 Episodes) + Assassins Creed 2 (only on 360/ps3 this Xmass) and,let`s not forget,the Modern Warfare 2 fanbase (they will not buy the Pc version,just the 360 version). They also have Halo 3,Gears 2,Fable 2,Ninja Gaiden 2,Lost Oddysey and Halo Wars,just in case you want to "Jump in" this Xmass. (Alan Wake says "Season`s greetings everybody"...lol).

Sony on the other hand have God of War 3,GT5 and Heavy Rain...but all in spring 2010...Easter,not Xmass.

So MS is very calm and will cut the price by 50$ on all models,but...when? E3 2010 looks good,when Natal hits,but if Easter gets hot for MS...cut the price when Alan Wake releases. Very easy and a job very well done,MS!

Since when was the GOW series a system seller?

@OP

They shouldnt keep doing price cuts...especially after the big one last year. If the MS's goal was to beat the ps3 with the 360 , they have succeeded and shouldnt do anymore price cuts until next year chrismas at the earliest.

The more price cuts/revisions you have, the less perceived value your product will have i.e dreamcast/psp

^ This

I'm feeling what you are saying here (bolded) but in the US (can't speak for other markets), is this really the case? 

Most expensive 360 widely available was at the $399 price point.  Currently most expensive produced model is $299 ($100 dollar cut, multiple revisions).  The PS3 on the other hand is on the market for a shorter period of time, started at a higher price point, has also had multiple revisions, and now a major re-design and is available for $299 (basically a $200 dollar cut)...

I'm agreeing with your premise, but I think disagreeing with your application.

That being said, when compared feature for feature, the inclusion of Wi-Fi and Blu-Ray in the PS3 does place the 360 in a bad spot, via head-to-head comparison, when they are at the same price point (as the elite and PS3 currently are).  I think MS will milk demand at this price point for a while longer, than announce a bigger hard drive and a small price cut on their top end model.

I'd be surprised if the Arcade changed any though.  That being said, I work in Pharmaceutical Research, am not a video game market analyst so...

Every location I go to still has 60GB 360's available which retail for $249, 50 dollars off its previous price, the elite was $399 now its $299.  Whatever word play you want to use is fine, it's still a price cut.

But back to the issue at hand, statements from Patcher is not idael for Microsoft because individuals will hold off any 360 purchase because they are expecting another price cut.  It would be in Microsoft best interest to come out with something to the effect that "at $299 the xbox 360 entertainment system represents blah blah.."  that way it thwarts any momentum for an immeidate price cut.