Let's not forget that, MS isn't in the console business to "win" but they're in it to make money. If MS wanted to win, they would give away consoles for $20 apiece.
MS can't cut the price much more. I think they're already losing money on each console sold. I don't expect a permanent $299 price tag until after 2015; Probably when a Slim launches.
"Never argue with stupid people. They will drag you down to their level and then beat you with experience."
-Samuel Clemens