Just ran across an article over at slashdot. PS3 dropping their price in the US to 499.
here is the article:

"
Gamespot is reporting that the rumoured price drop from earlier this week is a reality. Starting on July 10th, the current 60GB model will sell for $499. Coming to US shores in August is the 80GB version only available in South Korea at the moment, which will retail for $599. They're bundling that unit with Motorstorm, so it's not just another 20 gigs for $100.
"The price drop further indicates that, after a slow start, Sony is now aggressively trying to expand its customer base in the US. The move comes none too soon. According to the latest figures from industry-research firm the NPD Group, the PS3 only sold 82,000 units in the US in May, compared to the Xbox 360's 155,000 units and the Wii's 338,000 units."
So, is this it? Will this price drop make you buy a PS3, or are you still holding off for the big games this fall?
"
If those numbers are correct, the Wii is really selling some serious units, fad or not.

Didn't mean to double post, but anyways I think a console thread would be a nice addition.

Completely missed the PS3 Price Cut thread.
Thx for the heads up.

To add more content here is another article:

Several analysts, as well as a new report released on Monday are suggestint that a cheaper Xbox 360 could be announced as early as this week on the heels of Sony's PS3 price reduction to US$499.

"We have a bunch of different projects that cost reduce and improve quality as you find issues," said Xbox president Peter Moore when asked about the Falcon chip. "Once you get millions [of consoles] in the field, you learn about the box under all kinds of different circumstances, you can adjust and tweak what you do accordingly."

Analyst Micheal Pachter said on Monday that Microsoft will, in fact, reduce the price of the Xbox 360 tomorrow at the start of the company's E3 press briefing. He believes the $299 Core will drop to $249; the $399 Premium to drop to $349; and the newly released $479 Elite to drop to $399 in response to lower-than-expected sales of all three systems.

In a related story, Microsoft's VP of Xbox Japan Darren Huston told reporters today that the company has no plans to cut the Japanese price of the Xbox 360 given its competitive pricing in the territory.

I'm sorry - but how does that chart help your argument at all? If anything it verifies the Xbox owners' story?
According to the graph, the Xbox has sold more than double than the PS3 - and half of those were after the PS3's release!

Quoting northbloke:

Quote:
According to the graph, the Xbox has sold more than double than the PS3 - and half of those were after the PS3's release!

It's also funny how when the PS3 comes out, there's a spike in sales for X360! 

Quoting northbloke:

Quote:
I'm sorry - but how does that chart help your argument at all? If anything it verifies the Xbox owners' story?
According to the graph, the Xbox has sold more than double than the PS3 - and half of those were after the PS3's release!

Xbox-3,467,013  - 7 months
PS3-3,530,851 - 7 months

It's hard to get an exact number for the date, but basically I got a few thousand unit lead for this period.  For the most part it's even for the 7 month period in each console's lifecycle.

Therefore, all this PS3 is doomed crap is FAR from being true.

Build Quality...Xbox 360 and the PS3

Look at how much different the approach was on the build quality.

I just wanted to share this.

Microsoft Repairs will cost *in my best Dr. Evil voice* $1 Billion

Quote:
SEATTLE (AP) - Microsoft Corp. (MSFT) said Thursday it expects to spend more than $1 billion to repair widespread hardware problems in its Xbox 360 video game console after a large number of them broke down.

Microsoft said it would extend the warranty on the Xbox 360 to three years after too many of the consoles succumbed to "general hardware failure," but the company provided few other details about the extent of the problems.

"We don't think we've been getting the job done," said Robbie Bach, president of Microsoft's entertainment and devices division, which also makes the Zune digital music player. "In the past few months, we have been having to make Xbox 360 console repairs at a rate too high for our liking."

Bach said the company made some manufacturing and production changes that he expects will reduce Xbox 360 hardware lockups, but he declined to identify the problems or say which others might remain. Microsoft said it will record a charge of up to $1.15 billion for the fourth quarter to cover the additional costs associated with the warranty extension.

Matt Rosoff, an analyst at the independent research group Directions on Microsoft, estimates that Microsoft's entertainment and devices division has lost more than $6 billion since 2002.

Microsoft has written down larger amounts in the past - more than $10 billion in the late 1990s related to investments in telecommunications companies, and more than $5 billion related to antitrust issues - but a $1 billion write-down for one division in one quarter is significant.

"It suggests the problem is pretty widespread," Rosoff said.

Microsoft will pay for shipping and repairs for three years, worldwide, for consoles that experience hardware failure, which is usually indicated by three flashing red lights on the front of the console, something gamers sometimes refer to as "the red ring of death." Previously, the warranty expired after 1 year for U.S. customers and 2 years for Europeans.

Microsoft also will reimburse the "small number" of Xbox 360 owners who have paid for shipping and repairs on out-of-warranty consoles, Bach said.

In June, bloggers speculated that the Xbox 360 return problem was getting so severe that the company was running out of "coffins," or special return-shipping boxes Microsoft provides to gamers with dead consoles. "We'll make sure we have plenty of boxes to go back and forth," Bach said in an interview.

Microsoft's entertainment and devices division reported an operating loss of $315 million on $929 million in sales for the three-month period that ended in March.

MS has been in the gaming console arena for 6 years and has never turn a profit.  Now, there is another $1 billion added in the red.  I think they will be able to make a profit next year, but they have a long way to go to get out of the red.

Wall Street Journal...Can Xbox 360 Turn a 180?

Quote:
Can Xbox 360 Turn a 180?
Missed Sales Goals, Charge
Dim Game Unit's Chance
To Make Profit for Microsoft
July 9, 2007; Page C10

Microsoft's emergence as one of the big three video-console makers has been a technological coup. Yet the company has never made a penny of profit on the business, even though it has been selling consoles for six years. Now the software titan admits missing its already lowered sales targets for its Xbox 360. And it will take a $1 billion-plus charge to recall defective units. It's time for Microsoft to stop pumping quarters into this project.

Xbox certainly isn't worthless. Microsoft claims the line will turn its first profit this fiscal year. And margins will improve as the Xbox 360, its latest iteration of the game console, ages. Much like razor handles and razor blades, game makers lose money by selling subsidized consoles and make their profits on high-margin games over time.


Microsoft has missed sales targets for the Xbox 360.
But there are two problems. First, console sales have been lower than Microsoft hoped. And publicity surrounding the recall could make gamers think twice before selecting an Xbox. This isn't good news, considering Nintendo's Wii console is already outselling the Xbox 360 by 2-to-1 in the U.S., according to NPD research.

Second, Microsoft appears increasingly bogged down trying to develop operating systems, business software, mobile-device software, an Internet-search business and a host of other services. Its entertainment division, of which Xbox is a part, accounts for only about 10% of its total sales and even less of its profit.

Spinning off the division looks like a good idea. Of course, this would mean the stand-alone business wouldn't enjoy Microsoft's deep pockets when it comes to developing consoles. But is that all bad? Nintendo didn't have the resources to compete head-on against Microsoft and Sony, maker of PlayStation consoles, when it developed the Wii. So rather than concentrating on technological one-upmanship, it tried to make games that were fun to play. The result was a resounding success. Separating the consoles unit could allow Microsoft to focus on work, and Xbox on play.

I don't think they will spin of the division, but it's an interesting thought from the Wall Street Journal.

Virtua Fighter 5 Confirmed For the Xbox 360 w/ Lots of Added Features

Quote:
SEGA ANNOUNCES ONLINE MULTIPLAYER FUNCTIONALITY IN VIRTUA FIGHTER™ 5 FOR XBOX 360™

Premier Fighting Game Franchise Goes Online In Europe and North America

STOCKHOLM, SWEDEN (July 6, 2007) – SEGA® Europe, Ltd. and SEGA® of America, Inc. announced today that the highly-anticipated arcade fighting game, Virtua Fighter™ 5 for the Xbox 360™ video game and entertainment system from Microsoft, will feature an online versus mode at launch in Autumn 2007. The Xbox 360™ version of Virtua Fighter™ 5 is based on the latest arcade version update and features both analogue-stick and D-pad control, as well as vibration support. The game also includes an improved Quest mode featuring more CPU rivals, items, and emblems for character customisation. The DOJO mode has added features including leaderboards, training move settings, improved throw and escape training, and the option to change your opponent’s position and recovery type. These all work to create a more refined DOJO mode where players can improve their fighting strategy.

Now featuring an online two-player versus mode via Xbox Live®, Virtua Fighter™ 5 will allow players to compete online. Players will also be able to select one of the 17 characters or customise them in Quest mode. Customisation features allow players to modify their characters by selecting from four base costumes and then attaching a wide range of unlockable and earnable items. Players will not only achieve victory by defeating highly-skilled opponents, but also by competing for prizes and earning in-game money which allows them to buy many items at an in-game shop.

“For a lot of very good reasons, Virtua Fighter™ 5 is regarded as the deepest and most revered fighting game available on next generation consoles”, said Gary Knight, European Marketing Director, SEGA Europe. “Bringing Virtua Fighter™ 5 to the Xbox 360™ will not only capture an entirely new audience, but will allow gamers to show their Virtua Fighter™ skills online against friends and foes”.

Created by the renowned development team AM R&D Department #2 out of Japan, Virtua Fighter™ 5 will be released in Autumn 2007.

The Xbox 360 version will get XBL online play and the arcade version "C".  This is MUCH better than the PS3 version.  We will have to see if the online play can be made smooth.