They recently raised the price, so I do not think they will backtrack and lower it. With the release of Xbox 720 expect another price raise.

@ OP: thats good but should be worldwide otherwise its going to be the same as last year.

If you go to Amazon It's the same price cuts.

Wal-Mart B&M is also the same cuts. Too lazy to check walmart.com right now.

Not sure this will have that much if any effect. Do you really think $50 have prevented some people that haven't bought in to 360? there's already near 70 mil of these things out there. I think a 3DS-esque, more drastic price cut would be much more headline worthy & effective for 360, if in fact the goal is to take attention away from Wii U.

It better be, otherwise we will have to force Microsoft to activate our trap cards.

I was just looking at the Amazon bestsellers list and the 360 has seen a major surge in console sales due to the combined effect of this pricecut and Halo 4's upcoming release.  I think the 360 will have >50% console marketshare in the US for October.  It'll be interesting to see how it does against the WiiU in November.

Looks like this is a nationwide price cut on all 360 Kinect and holiday bundles.
They're calling it a temporary price cut so you go out and buy it....but I'm betting this is permanent. Wouldn't make sense to raise the price of your console after the holidays. If you do, that's just greedy.

Targat and Kmart have also dropped the price

http://www.target.com/s?searchTerm=xbox+360+bundle&category=0%7CAll%7Cmatchallpartial%7Call+categories#navigation=true&viewType=medium&sortBy=relevance&minPrice=from&maxPrice=to&isleaf=false&facetedValue=/-/N-5tdv0&RatingFacet=0

http://www.kmart.com/shc/s/search_10151_10104?keyword=Xbox%20360&vName=Movies%20Music%20%26%20Gaming&catPrediction=false

Its also in this weeks Best Buy print add. I'm surprised this wasn't leaked earlier.

Needs more games and IP's. Seriously. Unless you're a Halo or Gears nerd, it's not worth it.

Biggest thing though would be decreasing the price of Live...since you know paying to be play games online you own is a scam.