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PlayStation 3 Gets $50 Price Cut: Is Xbox 360 Next?

Sony today lowered the price of its PlayStation 3 video game console by $50. So the 160 GB version now costs $250 (down from $300). And the 320 GB model is now $300 (down from $350). But let's cut the chase, since there's only one thing that matters here: When--not if--will Microsoft cut the price of the Xbox 360 to match?

Microsoft currently sells two version of the Xbox 360, in what is sometimes referred to as the "S" generation of the console. There's a 4 GB version for $200 and a 250 GB version for $300. (There's also a 4G bundled with a Kinect for $300.) My advice is to leave the 4 GB version priced where it is and lower the price of the higher end versions to $250, matching Sony.

Of course, we learned recently that Microsoft is dropping the awful glossy finish from the higher-end Xbox 360 later this year. When you combine that with the fact that the Xbox 360 has been handily outselling the PS3 all year, maybe Microsoft will simply wait. Or perhaps they'll fire-sale current units for $50 off while supplies last.

My guess is that Microsoft will wait and see whether the price cut gives Sony the upper hand, unit sales-wise, over the next 30 days. And if so, they'll drop the price of the Xbox 360. Just in time for the holidays.

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