See, it all has to do with simple economics...and you don't seem to understand it very well if you think microsoft is stupid for not duking it out with Sony for second place this holiday season.

Microsoft
-Microsoft does not lose money on hardware and they would probably like to keep it that way
-They have a wide enough userbase and their console sells enough games that they can sustain healthy business without losing money on hardware at this point
-MS charges for XBL, and people are willing to pay (worth every penny). Another source of income

Sony
-does not have a confortable system userbase yet due to being in 3rd place is sales, hence doesnt sell as much software. Not as much royalties as Microsoft from software sales.
- still loses money on hardware
- does not charge for online service

So while you are right that MS is going to finish 3rd in console sales this holiday...they really dont need to bend over backwards to compete with PS3 for each console sold. They have a healty business model that is profitable at this point.

I think 2010 will be a bloodbath...great software on both sides, 360 price cut, and natal vs sony wand. Only then will we see who wins the HD console race this gen.

I concur, the whole giftcard-event was arranged by wallmart itself, propably to try and sell something else on top of the console or for PR.

I thought the MW2 bundle was pretty good. I already have an Elite 360, but I'm looking to pick up a MW2 360 bundle for myself now! (if I can find one in Japan)

dude are u kidding me 2 xbox? thats sad and u dont have a ps3 :s

Why is that sad? If I get the MW2 360 then I'd just give my current Elite to my gf. I like the design of the MW2 360, the extra space is nice! and I'm planning on picking up MW2 anyways.

I was thinking about picking up a PS3(used phat ones are ~$200), but I don't really want one as the 360 shares quite a lot of games with it. I'd rather buy a DSi or something,(I already have a DSL) probably since I've been playing so much DQIX lately.

I own 2 xbox 360 (one elite with 250 gb and one pro with 60gb)
one is upstairs one downstairs
now i need a second ps3

I got two xboxes. Well one is for the wife she loves not having to wait to play the JRPGS and games like Sacred 2 (though she had to wait for me to finish Magna Carta 2).

Anyways the bundles are good when you look at it this way

1) One killer week with $100 gift card at Wal-Mart. Nothing to do with MS tho right? Didn't really matter, almost everyone I knew jumped on the deal and some didn't get it simply because of stock issues. We had people calling every hour for one.

2) Modern Warfare 2 bundle sold out at my work (all 30+) and probably would have sold more if we got more in. MW2 was a awesome game to bundle the system with.

3) Black Friday deals bundled with games will sell quite well.

Anyways come Spring I'm sure MS has more up their sleeves and they'll have Natal next fall. Not much for them to worry about in the US, they need a better game plan for Europe though (Japan is out of the question for now and possibly forever)

No, not even by a long shot.

Halo 3 is still hugely popular online, and ODST gives you all of the MP maps. Which is perfect for a new console purchase.

With the Walmart deal a couple of weeks back I thought we witnessed a preview of what MS was going to do with the Arcade this year. Looks like I was wrong. I dont believe one Black Friday deal for the 360 is the Arcade. I thought since MS decided not to bundle any games with the Arcade that they were going to give special co-marketing deals to retailers to use the Arcade as a deal maker. Maybe not $100 off everywhere, but Arcades with $50 gift cards or different games bundled with at different stores I thought was going to be the norm.

Now looks to me that MS is simply going to be happy with a gangbusters profitable quarter with the 360 business and be OK with not selling as many.

i second this statement. While Xbox 360 may come in 3rd place this holiday season i still think they will sell very well overall and will be ready to rock and roll next year! 2010 is going to be Dope