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If microsoft decide to bring the xbox 360 core down to £179.99 and throw in a game and maybe a free memory unit (If microsoft makes the game and they make the memory unit it will cost them next to nothing to do). The wii will fail miserably in Europe. I'm going to wait a few months and hope Nintendo see sense and reduce the price.
They'd lose so much money on that deal it's not even funny. You're looking at an extra £80-£90's worth of stuff for £20 less. And the memory still wouldn't be as much! Microsoft will most definitely chose a different route to take down the competition.