However, don't expect a price drop this year. Even though the original Xbox dropped US$100 six months after launch, “this time around, the situation is different” says The Seattle Post-Intelligencer. As we reported earlier in the year, Microsoft has strenuously denied any price drop rumours on more than one occasion, and this was re-iterated recently when a Microsoft spokesperson said last week that the firm had, "no plans to adjust the price of the Xbox 360 this year." As has been mentioned, the US$500 - $600 price of the PS3 still leaves the 360 with a large price advantage, and with the severely limited PS3 stock available in 2006 (as well as the PAL non-launch), they have little to compete with this holiday anyway. "They'll hold off dropping the price as long as they possibly can," said Matt Rosoff, analyst at independent research firm Directions.
Evidently, Microsoft don't consider the lower priced Nintendo Wii to be as direct a competitor, even going so far as to encourage customers to buy both a Wii and a 360.
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