The Seattle Post-Intelligencer’s Todd Bishop reported today that despite the lowering manufacturing and production costs of the Xbox 360, a price drop for the Xbox 360 is “A Way Off,” this holiday season.

Ever since the start of production of the Xbox 360, the manufacturing costs of the next-gen console have lowered “faster than expected.” Because of this, there has been a rumor of an Xbox 360 price drop this holiday season, but Todd Bishop of the Seattle post today set it straight.

Todd brings up the fact that Microsoft looses money per Xbox 360 sold, and this is a main factor on why there will be no price cut.

Matt Rosoff, an analyst at independent research firm Directions on Microsoft, said, “They’ll hold off dropping the price as long as they possibly can.”

It is appearing that the Xbox 360 will continue its $399. $299 price throughout the holiday season, and seems that it will be the only console that will stay on the shelves and be readily available. Microsoft estimates and additional sale of 4 million units, by the end of the year.

You can read the full report here.