Obviously we ALL would LIKE the 360 to inexpensive, but what we want is not necessarily best for the business. So FROM MS's point of view, should they cut price, or leave it as is? If they do cut it, by how much? Here's how I see it: AGAINST PRICE CUT - Since the 360 is still new hardware, manufacturing costs couldn't have dopped that much, so a price cut would further hurt profits. If the PS3 were coming out for a cheaper price, a cut might be needed to undercut it, but the PS3 price is so high that it gives the perception that the 360 is less expensive - it's almost a psychological price cut. The Wii is irrelevent, as its going after a different demographic, and technologically inferior (from a traditional point of view). FOR PRICE CUT - Sony has been fumbling about badly of late. As MS's biggest competitor right now, MS should do all it can to cut down Sony's market share. Anouncing a price cut on the 360 would put a crimp in the PS3's launch - and that's already looking shaky as it is. A $50 price cut to each system would make the 360 nearly half the PS3s price, which could play big into buyer's psychology. It would also make the basic system comparable in price to a Wii (presuming the Wii launches at $200-250.). In fact, it's possible an announced price cut for the 360 PRIOR to Nintendo revealing the Wii's price could force Nintendo to go for the lower price as well ($200), further isolating Sony and exaggerating the PS3s cost. This would hurt the bottom line in console manufacturing, but it could also allow MS to dethrone Sony, resulting in larger long term benefits.