Microsoft seems to be preparing for an extremely difficult battle with Sony as the PS3 is starting to make headway in the console war.  With HD-DVD losing the nextgen format race, introduction of DualShock3, and the upcoming release of Metal Gear Solid 4, Microsoft realizes that they have to do something big.

With the rumors swirling around Microsoft and Sony talking about a Blu-Ray drive coming to the 360, Microsoft now has another rumor surrounding a supposed price drop of the Xbox 360.  The rumored drop is has a price decrease hitting Europe on March 14th, knocking off some €50 (roughly $75), putting the Arcade version of the 360 in the same area in terms of price as the Wii.  While there has not been a confirmation, if you were thinking of buying a 360 in the coming days, you should probably hold off to see if you can save yourself some cash.