Mr.Squirrel
Tom
One thing to remember is that RRoD really really screwed up MS' pricing strategy in more ways than one. This is something they acknowledged that kept the 360's price up longer than they wanted to and they were planning on being more aggressive. Paying $1.1 Billion for the RRoD issues and then also not being able to fix public perception until the Xbox 360 S really hurt them. If the next Xbox launches at the same price, they are going to make damn sure its reliable (and really-- the reliability issue for the 360 stemmed from a last minute change they had to do to comply with the EU's ruling of banning lead based solder) and then cut the price aggressively.
I'm sorry but no. $600 consoles will not sell. The economy is worse than it was in 2006, the masses is not going to pay that type of money for a MS/Sony system, RROD or not.