The entry price of the Xbox 360 has been pretty steep, and has caused some people to steer away. Microsoft wants to alleviate that, and has now confirmed that every
year they will reduce the price of the console, making it quite a bit easier to get our hands on. Starting this December in Europe the 360 will debut at £209.99, and yearly will be reduced, apparently worldwide.
"We will wind up cost-reducing the product every year," Todd Holmdahl, corporate vice president of the Xbox product group, told Reuters.
It's known that the Xbox 360 costs less to manufacture (at least the cheapest version) than the PS-3, though how much so isn't known. This does let Microsoft and associated partners drive the cost of the hardware down over time.