Well it has nothing to do with hardware, that's why it doesn't matter which console is priced how far above or below the weakest system. Microsoft is selling the least number of hardware units each month and so Microsoft need to drop the price of the 360.
I think Nintendo are probably waiting for Sony to match the price of the Wii with the PS3 before they drop the price. When they do I fathom that they will either drop the price by $10 as a gimmick, or drop it right down to $150 to create another surge.
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