If Microsoft had cut, they wouldn't be missing their forecasts. I was hoping for Microsoft to get more aggressive with pricing with Xbox, and I'm still waiting for it with 360, particularly as they're making a profit on the system and would still be with a $100 price cut. It's not the end of the world if they don't cut, but it would help.

Uh, no....they have more margin to work with than the others because their console is more expensive. Even the PS2 components still cost around 120 dollars or so. You can only cut so much out even if its old tech. To expect the Wii to get to less than say 100 is pure nonsense. Meaning they can only cut 150 dollars from the price. Consoles that are more expensive in price at launch can always come down MORE than those at a lower price at launch. Where were you last gen? GC 200 to 100. Xbox 300 to 130 (or was it 100?) PS2 300 to 130. PS3 and 360 actually have MORE MARGIN to work with than Wii. Your statement is false. And price wars typically only have one stage in consoles, the first person to lower causes the others to lower and then subsequent price drops occur according to schedule. Once again, was there a price war last time? Not really, PS2 dropped, then Xbox did, then GC then price drops occurred on a scheduled basis afterword. Just cause PS2 was out longer and could have lowered to say 150 instead of 200, it didn't make sense to.

I doubt the 360 is going to get a price cut anytime soon, The new supposed system "elite" will have a retail price of $479 compared to $399 for the premium. If MS was going to cut the price then they would make the Elite $399, and the premium less. Also, there not going to release a new system and cut the price 6 month later to piss everyone off. Strom: I think what Fishy was referring to the fact that out of the three, Sony loses the most. That's why he states that both MS and Nintendo have that extra margin of profit to cut.

Forget about price cuts. None of the 3 companies are interested in dropping their margins - if it happens, MS will lead to put pressure on Sony. Nintendo - Wii price cut = no. As long as its selling out (quickly), Nintendo will not even consider a price cut. It would be stupid to do so. The DS hasn't had a price cut since it was released. Expect more package deals instead (Wii + Wii Sports + other game for $20 more, etc). Sony - Sony have stated they have no plans to drop the price for 15-24 months. I don't think they will wait this long (if sales continue to disappoint). When the Xbox1 launched (here in Oz), the price was way too high (about $150 less than the PS3 at the moment). Within 2 weeks, the price had dropped about $200AU (to a much more competitive level). PSP price drop, and new model out for Xmas. Microsoft - 360 has been out for long enough, and its about time for a cut - for Xmas/Halo. Expect the new model launched, and price cuts to the base (maybe) and the premium model. This may force Sony to follow suit - esp. if MS has plenty of stock available/in the market.

As a guess, I would suspect that Sony is waiting for more data to come out for the North American and European markets before they even consider a price cut ... It will probably be June before they feel they have enough information to decide about a price cut

Not true, it went from $149 to $129. Then of course they released a new model with superior features for the same price. Back on topic, I don't think a price cut for any of the three will happen during 2007. Nintendo is notoriously stingy about this sort of thing, Microsoft is desperate to get to profitability, and Sony is already losing billions even with their high price. There is just no incentive for any of them to cut the price so early unless one of them completely tanks in sales later this year, which I'd say is highly unlikely.

Nintendo will be the only 1 to drop their price and that is only if they increase production 2x - 3x. Unfortunately nintendo arent quite aggresive enough to go and do something like that

the standalone blu ray is supposed to drop down to 499 in june as announced by sony the weird part is that they said it would be more affordable and easier to get on to the market faster for consumers..... okay so drop the dam price for the ps3 then

Both Microsoft and Nintendo have no reason to cut prices, since both systems are selling pretty well. Sony would like to cut prices in order to spur sales (I don't think anyone at Sony said "hey, lets make our console more expensive than everyone else's"), but as was mentioned before, they don't want to get into a price war with MS or Nintendo. If they cut prices, then MS and Nintendo will respond immediately cut prices as well, limiting the effectiveness of the initial price cut in the first place. It will also take longer for them to break even on their PS3 investment. So right now Sony is between a rock and hard place. They just have to hope that more people are going to buy a PS3 at 600 dollars, along with a bunch of PS3 games and a bunch of Blu Ray movies.

I would like to agree with everybody that says that nor Nintendo nor Microsoft wants a price cut. Microsoft needs to show some black numbers and with the software sales they have they can easily wait for the profit (they have steady hardware sales in USA). Nintendo is sold out everywhere so no need yet. I think Sonys first start will not to dropp the price, but to add more value for the money. Start including the blu-ray remote and some blu-ray disc. Add some game bundles etc. Microsoft is doing the same thing now so I guess we wont see a official price cut before 2008.