The Xbox 360 has already been effectively price dropped. Fry's has been bundling a Xbox 360 + game (depending on the week PGR3 or Ridge Racer so far) for $409 for a few weeks now.
I'm actually looking for Microsoft to release upgraded configurations to challenge the PS3 release.
I think the 20GB hard drive will be added to the core system and it will keep the for $299 price point.
I think the new "premium" will be called something like the Xbox 360 Live System and come with a pack-in, 3-6 months of Live Gold, possibly integrated wi-fi, and a higher capacity hard drive (80-120GB to trump Sony) and retail for something like $429.
The old "premium" stock would be dropped to $359 until suplies ran out.
I think just dropping the core will save them some money, no?
I think it'll be cheaper this fall, but you won't hear MS admit to it until the day it happens. Whether it's what's out now for less, or bundles that save you money, who knows, but they'll do something. Would be nice if they were lying to us and snuck halo 3 out the door in november...wink...
Why drop the price if they feel they have the better product at a lower price? Is there something wrong with the Xbox360? Do they think that lowering the price will get them to beat the PS2 in sales? Are they worried about Nitendo and the Wii? Why would Microsoft want to lose more money? Is this why Bill Gates is jumping ship to run his benevolent outreaches? This is begining to sound like MICRO- GATE!!!
Bill is taking one foot off the boat, not jumping ship. He's been doing this a LONG time and has other, more important to him, things to do. If MS was in trouble he'd be giving some money back to it instead of billions upon billions to kids in africa.
I think MS is NOT worried about their finances at all...