actually 99$ would be huge loss. though they  regain on live.

so by your definition it's desperation.

Sony may not be dominant at the moment but look at their recent numbers the PS3 is rapidly gaining on the 360. Another price cut for the Arcade bringing it down to the 100$ mark would see sales jump back and hold Sony at bay. After all we know that in past generations when the hardware dropped to 100$ sales were bulstered and the hardware would sell immensly. This of course usually came at the very end of each generation to clear unsold hardware off store shelves. But you never know if Microsoft wants to kick Sony's butt they may be forced to lower their prices once again.

P.S- Bundling Natal with every 360 may sound like a bright idea but Microsoft would loose a crap load of money. Some think that the next X-Box will come bundled with Natal at a 500$ pricepoint or something similiar. This makes way more sense then Microsoft loosing even more money on every console sold.

So is their a chance that next fall we'll see a new X-Box and see 360 price cuts like we have seen every prior generation?

If it was 99 I'd defo buy it. But I'd want an HDD with that : D

Desperation it's a last resort to an oncoming jugganaut from a Sony and Nintendo christmas and Microsoft have no answer

as of now people seem to like buying the more expensive PS3 then the cheap 360

Sony lost last xmas badly, so whats your point?

Like i said, sony have made their move "earlier than intended ps3 slim launch"

Microsoft still have plenty left up their sleeve, (and a great software tie ratio and overall sales, Who can argue with 11 million sales combined for Gears 1 & 2, and Halo 3 & ODST's almost 13 million sales and counting)

And with sequels to some big sellers on the way like Fable III (Fable II, 3.2+ million) and Halo: Reach (Halo 3, 10+ million), theres every chance that 2010 could be Microsofts year.

And Natal is sure as hell creating much more media buzz than sonys wand.

BUT none of those are moving hardware.....

Seems llike a smart business strategy for a company that can afford to lose the money in order to gain market share.

It wouldn't suprise me if todays early walmart sales are just the beginning of a very cheap 360 christmas.

And? whats currently moving sony hardware? oh, thats right, a slim version of the ps3 that was not intended to be launched at this time.

Sony used to launch slim versions of their consoles when either they wanted an extra hardware boost or the console was on its last legs or approaching that stage, they launched the ps3 slim early cos sales were simply not up to scratch., they launched ps2 slim to capitalise on their already strong sales position.

Both companies no doubt still have a few tricks up their sleeves this gen, but sony made the most recent move, writing off the 360 at this stage considering how well it has done thus far is clearly not advisable.

Ps3 slim launch this gen was not a luxury like it was with the ps2 slim, it was a necessity.

It was an act of desperation to slow down Sony's momentum and try and salvage the holidays for 360. But in the big picture its not desperation really.