People keep talking about the loses from the first Xbox and use it for an argument against the 360; even with all the loses MS incurred from the systems they still make Billions of dollars each year.  They have also turned a profit will the 360 for multiple quarters. 

Anyway, the PS3 is doing well because it is now more reasonably priced.  The 360 will continue to sell as well, neither system is going away.  I hardly see MS being desperate for any reason.  I'm sure both companies still have plenty of cards to play.

It is extremely doubtful that MS made any deal with Amazon/Wal-mart regarding the recent $100 gift card promotion.  If they wanted to do some sort of deal, it would be limited to only these two companies and it would most likely involve a mail in rebate.

These are just the holiday deals ramping up to try to get people shopping early and often.

I love how the tables keep getting turned. It's rather exciting.

OT: The 360 isn't faltering. It's doing ok. And the reason the PS3 is doing so good - folks are like 'Hey, I don't have to work 2 jobs to get one!' And when those folks get one, the sales will fall too. Then, even more folks will buy one when it hits $199.

That's just the way the cookie crumbles.

If they do that, then two games or at least DJ hero and co. would be equal or more expensive thant the 360.

99$ xbox will tear competition (which Wii is not) apart, so how could it be a desperation move?

obvious desperation, they are already losing lots of money and a 50$ price drop in september boosted sales for one-two weeks with barely any extra sales akin to a semi-popular game releasing.

Of course, this isn't an official price drop. It's probably some deal in which a portion is going to charity or some such scheme to pay less taxes. However, even if it was official, 360 would not increase in sales by that much

Lastly, 360 has been actually making profit recently, and this is a bad thing, naturally. MS' goal is not to make money, but to beat Sony, therefore, they are willing to sell at a loss in order to win some imaginary intangible war that Sony is now winning.

So much fail, this post has.

ORLY?

why don't you explain yourself before I report you for flaming.

Good luck.  Flame, I did not.

I'd explain why it was full of fail, but I'm really tired of repeating the same thing 1000x to people.

OK fine, I'll explain for the last time, give me time to edit this.

1.  MS is NOT losing lots of money right now.  In fact they have shown strong profits in their gaming division for like the last 2 years now.  MS overall has not reported a loss in years.

2.  This is neither a price drop nor a special deal.  It is not supported by MS in any way, shape, or form.  It is a Walmart early Black Friday deal.  They did this exact same deal on the PS3 twice already.  It is their choice, and MS has no involvement in it.  They are offering the Arcade AT NORMAL PRICE and are giving you a gift card that can ONLY BE USED at Walmart.  None of this is going to some charity or whatever.  And if this was an official price drop everywhere to $99 the Xbox 360 would outsell the PS3 for the remainder of the generation.  Oops I shouldn't say that because I'm starting to sound like a PS3 fanboy

Do you honestly think a $99 Xbox 360 would not have much of a sales affect?  I'd love to hear the flawed reasoning behind that one.

3.  Profit.. a BAD thing?  Seriously, I thought your post was entirely sarcastic because of how ridiculous it was!  MS is both profiting and still beating Sony is this imaginary intangible war you incorrectly think Sony to be winning all of the sudden from their drastic price cut and rebranding....  I don't know if you are aware, but the Wii is still dominating the HD consoles in sales, and the PS3 is still near 7 million behind the 360... So the Wii is still winning this imaginary intangible war, the 360 is still second in this imaginary intangible war, and the PS3 is still last in this imaginary intangible war that you don't care about at all yet secretly it is very important to you if you feel the need to spread all this FUD and at the same time incorrectly claim that you think Sony is now somehow winning that war.

YAY

"Similarly, do not reply to other posters with "you're wrong." Explain why you disagree, and perhaps point to the correct answer."

maybe you should be told this for the 1001 time?