It looks like Microsoft is planning to crash Sony's PS3 launch party by dropping the price of the Xbox 360 this coming Christmas. A source close to Microsoft says consumers can expect a price drop of almost $100.
The source also revealed according to Britxbox.co.uk that the Xbox 360 hardware team are now busy redesigning the chips supplied by ATI and IBM to cut costs and allow a price drop to coincide with the release of Sony's Playstation 3.
If this holds true you will be able to buy an Xbox 360 for half the price of the PS3 this Xmas. This will certainly put Microsoft in a very lucrative position when the next-gen console war starts for real later this year.