Honestly I don't think that Microsoft needs to drop the price of the 360. It is cheap enough already that people don't hesitate to buy it.
Halo 3 is going to be one of the best selling games ever. Microsoft probably put their new 3 year warranty in place instead of a price drop in order to make consumers feel safe about buying their product.
I think Microsoft will ride out the Halo 3 hype as long as they can and then once all the excitement has died down they will drop the price to stir up sales again.
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