After Microsoft announced a close-out deal price cut of a discontinued model of the XBox 360, Sony answered back with a permanent price cut in the PS3.

Will Microsoft be forced into making a similar permanent price reduction for the continuing models of the 360? This prediction will be judged a success if, prior to December 1, 2008, Microsoft announces a new suggested retail price for the 120GB XBox Elite of less than $400 or of the 60GB XBox 360 Pro of less than $300.

reference article: http://www.tgdaily.com/html_tmp/content-view-38419-98.html