However, he didn't want to put a date on it:
Kim declined to give a date for when the price cut would occur, but a holiday 2007 price cut would do wonders for the platform along with the release of Halo 3 and Grand Theft Auto 4. “The timing depends on a lot of different factors and we'll just keep evaluating those,” said Microsoft’s Robbie Bach.
The price cuts may be financially feasible for Microsoft once the 65nm Falcon chips start rolling off the assembly line . According to Dean Takahashi, the 65nm IBM processor and ATI graphics chip are 50 percent cheaper to produce than their 90nm counterpart and also run cooler.