Well, with the price drops, the first salvos have been fired. E3 coverage at the various gamesites have shown that Microsoft is coming out swinging with its XBOX LIVE(50.00 a year).
However, you must also think of the PC gaming sector. With Next Generation consoles making games of comporable visual quality and sound, and with fewer titles being released exclusively for PCs, I think the PC game market will have to definitely rethink it's online strategy.
