Totalvideogames.com has word of the Reuter's interview with Todd Holmdahl, Vice President of Xbox, about the annual price reduction of Xbox 360. Here you have the deal:

Corporate Vice President of Xbox, Todd Holmdahl, has said in an interview with Reuters that he expects the consumer price of Xbox 360 to reduce commenting that, “We will wind up cost-reducing the product every year." There is more scope for Microsoft to drop the price of Xbox 360 than its predecessor thanks to the fact that they own the Intellectual Property inside the console – rather than using ‘off-the-shelf’ products as they did with the original Xbox.

The aim is for the division to break even within the first year or two of the Xbox 360’s launch, something that they could have only hoped for with its black box predecessor. Reuters refers to comments made by IDC video game analyst Schelley Olhava with expectations of up to 40 million Xbox 360 units by 2009, compared to 49 million PlayStation3 units.