my best guess, not insider info. the only reason you do a price cut is if you can make more $ buy selling more consoles at a lower price than you are selling at the higher price, meaning you have the supply, demand, and finances to do it. if you look at the news page today the wii is having supply problems. so they may not have alot of units to sell at christmas. they will have the demand but not the supply. they cant sell more units than they can make so no price cut there. they make more at the higher price. sony seems to have the supply but not the demand. cutting the price might help the demand but it would also increase their losses and i'm not sure they could survive loseing even more money in the short term. they might be bankrupt before the investment of the instal base would earn them the money back.
that leaves the 360, the one with the supply, demand, and finances to have a shot at making more by charing less per unit. if either of the other consoles cut their price ms would match the move. but halo3 is coming out in the holidays, and that combined with christmas shoppers will create demand and sell more consoles at the higher price, meaning microsoft could make more money on less consoles. or they could go for the kill and do a price cut that would seriously harm the other consoles ability to compete. the other consoles would have to cut prices or lose sales, meaning they would have to lose money. any money they lose they cant reinvest in their next console, giving ms a large advanted next next gen. if you look at the netscape vs internet explorer ms will put competitiors out of business to reduce competition.
so i think it's 50/50. does ms go for more money now, or do they go for more money later. they are the only one with nothing to lose. if the price cut dosn't happen this year i would look for it early next year as soon as halo3 stopps selloing consoles.
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