It won't matter if they cut the price as long as they bring value (great games) to the console. THAT is what MS is banking on, not a kinectless SKU, but way better games than the 360 ever had.

its not price its value to a US consumer. In March the XB1 had a better value hands down. and lost

Not really, add everything up PS4 beats it out on value. 

Sure X1 and TF cost 450 but what good is that with out paying for Gold.

hardware+kinect+tf+ all the other freebies made it a better value. When I bought the PS4 back in DEC it was a joke. PS4 100 cheaper and better hardware.... now I think it comes down to momentum which the PS4 has.

That's where opinion and personal taste starts. Technically yes, in terms of games totally depends.

Kinex pretty much useless till Sports came out and even then its debatable. 
With TF you need to pay for online or else its useless.  That TF bundle forces you to buy add on to make game playable long term. 
Gold lacks free games + gives you. 
X1 lacks the ftp games PS4 has.
X1 is inferior hardware, thus should cost less then PS4.  I wouldnt buy a v6 mustang if a V8 camaro cost less, would you ?
PS4 3rd part run better.
+ 50 for MS offical battery and headset adapter (PS4 lacks such add on extra costs for basic features)

PS4 still was the better value.

The Xbone was at 399 for most of March due to unofficial pricecuts and promotions. The avg Xbone price last month was between 399-449 depending on the time and retailer you went, and with the crazy advertisement Titanfall got: PS4 still won  by 60k.

349k might help but I'm not sure MS already wants to cut the price by 150 bucks only a few months after launch.

All I know Microsoft has to act fast. The more Playstation 4 is selling, the more developers are going to use it as main platform and port the Xbox one version.

Microsoft doesn't have a huge first party studio's collection, They mostly make deals with 3th party, now it's getting way expensive, because they have to compensize the sales the developers misses (if we talk about exlusive deals).

Right now, Xbox one has a better game library. They should take adventage of it (somehow). In the future we get project Morpheus and Playstation Now. Sadly, we don't have a lot of information about it, but it looks promising. Especially Morpheus looks interesting.

What does the Xbox One has for the future? Sorry, I'm not that well informed, perhaps I missed something.

All what I'm trying to say, Microsoft show us what you got for us at the E3! Sony, has extremely much luck with all hype, strong brand name, better hardware and is known for a long support.

Calling it now: If Microsoft drops the price to $400, Sony will drop the PS4 to $350. If Microsoft drops to $350, sony drops to $300.

Xbox One was 399 for less than 30 minutes due to an error on Amazon US while people were asleep. Not an average. And if you mean X1+ Titanfall then the Xbox would be 389.