They've got the widest margins in hardware production. And as a result they've been able to drive down the price of hardware -- an important competitive advantage in a weak environment.

Hardware price cuts are necessary not only to drive demand at the end of a console cycle, but also to bring the current-generation consoles within reach of more value-oriented customers.

We've undersold ourselves. The retailers have been absorbing price changes. They're prepared to lower their margins.

Through their product offering, price-competitiveness, and moving production overseas, Whirlpool has been able to compete on price. That's how they've been winning.

There's no way you can cram enough hardware into a $500 price point and make it run well for Windows XP, let alone Vista.

That price includes a 25- year or 5,000 hour guarantee on all the hardware and the lamps. At the end of the period all the lamps will be replaced.