i dont think they will cut price as they are already at 199. but i can see them putting a HD in the arcade

Yes, I do think that MS can do another price cut on the 360, though I don't think it will be too dramatic. The arcade will not go sub $150; I see it either going to $179.99 or maybe $169.99 to compete with the PSP-3000 and DSi. The elite would be cut at the same time, and I do see it going to the $249.99 price point. And this would leave the $299.99 price for the limited edition bundles. Having a value price of such would ensure that they move off the shelves fairly quickly, and helps to maximize raw system profits, as the cost to press the game and go from 120 to 250 GB on the drive is substancially less than $50. Game development costs may take a hit, though, but with 30+ million systems out there, they should be able to sell enough to at least break even?

I so love hearing people state the obvious. Why oh why is this kind of posturing even posted?

The bottomline is jsut that...the bottomline...this gen has become a brutal war of attrition, and guess what, M$ has more money, and a better cost model...We can wait for the next 10-Q, but I can already guess what we are going to see...Profits for one and losses for another.

heruamon, yet to see this become a war of attrition. doubt it ever will. tis but a battle, with each player adopting their own long term strategy. This battle can be won or lost but in the long run i cant see any of the players laying everything on the line.

nah, it is bad for Sony !

I would prefer consumers to buy a PS3 or even the cheaper PS2/Wii

that is all

nah, just a Sony/PS fans ...

does anyone know if they make/lose money on consoles?

No,HDD`s cost money for consumers and offer a superior experience. In reality,HDD`s cost little to MS and they prefer selling them for a profit. Not including WiFi in the Elite or even HD cables proves that they want profit for "the Elite experience...top of the line".

They will slash 50$ off every model (they have`t done a price cut,they just doubled the PRO`s hdd and called it Elite) when they feel they are in a bad position and losing steam. If they don`t cut the price this Xmass,they will cut it in the spring when they have heavy competition from Sony.

After all,what`s the best solution to a good game lineup? price cut.

Sony did this now,when they have only Uncharted 2 while MS has Halo 3 ODST,Forza 3 and GTA4 Episodes. But when Sony has God of War 3,GT5 and Heavy Rain,what shold MS do? ding ding...price cut! They will have Alan Wake and Mass Effect 2,but...price cut remains king.

interesting, I don't know MS need to do this just yet, the 360 still has a big lead over the PS3, if the PS3 continues to outsell the 360 till december though, they might cut it (maybe just short term) for the holiday season.