Officially Microsoft is putting on a brave face, saying they won't
drop the 360's price even in the console's weakest market: Japan. Just the same (probably in anticipation of
Sony's PS3 price drop), the San Jose Mercury news says the company is secretly working on
preparing a lower cost Xbox 360 SKU. Called 'Falcon', it's a cost-reduced system using 65nm chips instead of the at-launch 90nm electronics. This ties right into Michael Pachter's
expectation of such a cut; it should be noted he doesn't see the DS or Wii prices moving any time soon. Related to all of this, Newsweek's LevelUp blog has two great interviews today: a
Peter Moore discussion harkening back to last week's warranty announcement, and
a chat with Jack Tretton about the price cut and the 360's hardware issues.