Offhand, I don't see them dropping under whatever the PS2 assumes unless they start REALLY losing ground to the GameCube, and I don't think that's happened yet. Console sales are faltering indeed, but then we've basically hit the apex of this generation, and are going to have a sliding scale down until next gen. Dropping price will mitigate that from a number standpoint, but could definitely hurt on sales. The only thing I AM willing to bet is that they won't let themselves get visably behind the GameCube, so if that starts to come about, I expect to see corrective measures in bigger or more frequent price drops. (I wonder if it would be more interesting to do a quick run of smaller price drops, for visability's sake?) But since MS is still losing money on the boxes, I don't see them pricing below the PS2 unless times call for desperate measures.