Quote:
"considering that none of the leaked flyers that have popped up have mentioned price drops for the other Xbox 360 SKUs: a $299.99 Xbox 360 Pro would effectively kill sales of the $279.99 Arcade SKU unless MSFT was willing to also slash the Arcade's price."
If they were to cut the price of the Arcade Model as well by $50 they would sell out in record time! A $229 Console with PS3 quality (if not better) graphics would be an amazing deal.
They would temporarily loose a little money but get it all back because more publishers will be attracted to the massive user base.
Example: Rock Band 2 being released on the XB360 months before the PS3,Wii,etc Versions.
In short they wanna make a profit first to balance out the potential loss and parts shortages for all the kits they would have to of made.