
Now that Sony is almost ready to reveal its plans to release a 40GB version of its Playstation 3 console in early November in the US and cutting the price of the 80GB version again, it looks like Microsoft already has some plans to counter the Playstation 3 price cut. According to Spanish retailers Microsoft is planning another price cut, to keep the original price gap between the Xbox 360 and Playstation 3 intact, or maybe even enlarge it. Sony earlier revealed it will be launching a 40GB PS3 in October in Euope for only 399 euros, and cutting the 60GB Starter Pack from 599 to 499 euros.
According to some Spanish stores Microsoft is planning to cut the price of the Xbox 360 Premium and Elite. The price cut would bring the Xbox 360 Premium to a price of 299 euros, and the Elite to 399 euros. This means both packs will have a 50 euros price cut. This would make the Elite as expansive as the new 40GB PS3. Off course this is just a rumor, but it could always happen. Microsoft is still tight lipped on this rumor.

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399EURO is £271. Which is only a price drop of £28.
If they threw in a copy of Bioshock or Halo I would deffinatly pick one up for that price. Otherwise I will wait until they drop it to £230.
Its in Microsoft's best interest to keep the price gap between the 360 and the PS3 as wide as possible. The price difference was one of the biggest advantages of the 360, and that is not something that Microsoft should be greedy about and toy around with.
thats what im talking about. I want the Elite but im waiting for a price cut and you had to know it was coming after the 40GB. Now if they get that Elite to around 350 im getting it! Ive been saying Jan-Feb is when im getting it.
Not only would it be good to counter Sony but another price cut from the 360 would also have to push Nintendo into making a price cut as well.
MS has lost 3.9 billion dollars since launch on there 360. All those ppl that have said Sony looked desperate with this price cut should really be eating crow when this becomes fact on the Elite!