" Seriously? Microsoft can win E3 just by throwing money at the audience. "
Yup, that's pretty much the only reason the 360 is so popular. Clever marketing. This "new" 360 is basically just a way to get back on top of the monthly, console sales chart. That way they can say "See, the 360 is better then everything else. Shouldn't you buy the best?" and then that will in turn cause people that don't know any better to buy the 360. It's been working for the past 5+ years, why would they stop now?
It's the same reason they can charge for Xbox Live. The PS3 basically has equal parody in the online aspect of their console, yet they give it out for free. Microsoft can charge for Live because they are good at projecting, and marketing the illusion that it's "better," and people are willing to pay a little more for something that they think is better.
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