The prophecy, also spoke of another fate for the 360: a September price drop. While this may not seem necessary as the 360 is already the cheapest current-gen system available, it would make sense as who would buy a Pro for $299.99 if the Elite is also $299.99? Microsoft was willing to drop prices on the 360 last September when each unit experienced a $50 cut, and nothing makes it seem that they aren't willing to do that again.
If it is true, that would keep the Arcade at $199.99, the discontinued Pros would most likely be discounted to $249.99, and the Elite would drop to $299.99. An entirely different pricing scheme COULD THEORETICALLY MAYBE PERHAPS drop the Arcade to $149.99 and the Elite to $249.99. Doing so would not only force Sony to seriously consider a price drop (which, let's face it, is coming sometime this year, most likely when the PS3 Slim comes out) to both the PS3 and PS2 (the PS2 would most likely only see a price drop if the 360 dips to $149.99), but also Nintendo to drop their price on the Wii.
The Wii, at $249.99 is still selling quite well and while Nintendo execs have downplayed a rumored price drop for the past months, it is quite possible that they could be forced into it if the 360 drops to that lower price. The Arcade, which already costs less than the Wii, still hasn't managed to outsell the little white box, which could be a deciding factor into dropping the Arcade's price. The addition of more “casual” games to the 360's marketplace could also woo potential Wii buyers away.
Project Natal, Microsoft's controller-less project, seems to aim right at the people who are afraid of the system because of the controller. The “I don't understand these controllers” excuse would no longer be valid as Natal doesn't use a controller, rather it uses a camera that tracks the user's motions and movements. Project Natal isn't scheduled for a release date, and the Fall 2010 date that Steve Ballmer had quoted was retracted, which in all honesty means that they are targeting a Fall 2010 release date, but are unwilling to commit to it, as many problems could come in the foreseeable future.
If Natal does hit in 2010, Microsoft's most likely move would be to keep the price on the 360 where it is now, and lower it when Natal launches sometime next year. A $100 (estimated) Project Natal is an easier price to swallow if it comes with a $50 price drop on the 360 itself. Some sort of coupon might be in the works as well, offering some amount of money off the 360 if purchased with the Natal. That would mean putting current 360 owners at a price disadvantage, but let's be honest, most people are going to buy it anyhow.
