The “Break it Down” Blog

Microsoft continues to deny a Xbox 360 with a Blu-ray drive to avoid letting 360s sit on shelves and collect dust while people wait… but rumor has it that a subsidary of ASUS has won the contract to build the Xbox 360’s with the Blu-ray drives in them for Microsoft, prepping for a Q3 release this year.

Microsoft is going to do anything to close the 360/PS3 gap as fast as it can, and the Blu-ray drive is one of the biggest selling points for the PS3. With that gone, and no exclusives on the PS3 winning people over yet, it’s probably a smart move.

My expectation is that Sony will drop the PS3 $100 in response to this for the holiday season this year, so instead of $399/499, it will hit the $299/399 price point for Christmas.