IGN reports that Sony has plans of dropping PS2 prices in Japan. You might think an US price cut would follow however I believe we are still a few months away from seeing that happen as they keep selling a huge volume of them independently from what Microsoft or Nintendo are doing in the market... now let's imagine they decide to do so still, do you think Microsoft could handle such punch? X-Box isn't as integrated and does cost more to manufacture.

Since ps2 has better content games than the xBox, maybe Microsoft should put it's computer games into the xBox. Not the newer ones of course.