[quote name='zewone']I know what you're trying to say Wolfpup, but really, if the 60GB PS3 dropped to $500 on June 1st, and MS dropped the premium to $300 on June 2nd, do you the general public would care who dropped what first?[/quote]
[I presume you mean Sony would drop the PS3 to $400 (or maybe $430 like in Japan?]
Anyway that's not my point. Microsoft won't be gaining anything by dropping at the same time as Sony, they'll just be keeping up relative to where things are now.
By fiddling with the packaging prior to Christmas-maybe drop the "core" system, and just have one system with a hard drive but nothing else-Microsoft could have undercut Sony's pricing by $200 while losing little to nothing per unit.
A $300 price tag for a true next generation system would have been VERY appealing against a $250 Wii, or a $500 PS3-I think it would have boosted sales well past where they were, and I don't think Sony or Nintendo could have done anything to counter it (besides just having "new" hardware).
After the recent news from the Sony official, about the PS3 won't see a price drop anytime soon, if I was MS I would drop the Core to $200 and the Premium to $300. At that price point, I'm sure that would push a lot of people that were on the edge, over. The $100 they lose on each system would more than likely be made up by new customers buying software/accessories/Live gold.
That's EXACTLY what I'm saying, except I think they should have done it before Christmas, and maybe do some "Nintendon't" style ads like Sega did in the day, showcasing Gears of War and Viva Piniata Lost Planet against first generation PS3 stuff...and against Wii stuff too! Show off all the great first and second party 360 games, show how much better it is than Wii, show it's just as good as a PS3, but cheaper (after dropping the price that is).
But yeah, they should drop as soon as possible to get the maximum effect. (And Sony's already rumbling that they may cut prices, though haven't given a time frame.)
I think more that they'll just eliminate the Core package though, as they lose money on it apparently, and it's kind of just a gimmick. A more streamlined "regular" 360 with a hard drive is probably the way to go.
Do that now to move 360's, and fiddle with the pricing again when the new model hits (if it's a major redesign like I hope it is).