Last year Microsoft boosted Holiday sales with $50 off promotion that started November 2nd. Seem like Microsoft is in a good position to offer the same deal this Holiday season with so many of its bundles price at $399-499. They would not even be taking a financial lost on these bundles. 

I would think if Microsoft will have the $50 off promotion it would happen before Halo 5's October 27th release. Microsoft can't afford to lose this Holiday and I think this price cut is all but certain.  

I think it will stay where it is but they will heavily bundle it

I fully expect xbox will drop price. When I think about the playbook they've used in the past, i feel good about the plans i have in place going forward in the holiday. If history tells, then we'll see a price drop from them coming.

No way is Sony dropping the price, expect the same prices but heavy bundles from both companies

I think we'll know after Paris how Sony is going to handle western markets pricing this year.

I expect another fire sale.

We have many things leading up to this:
1.) The box design for the new bundles is lackluster (they must believe a future sales will sell units on price alone)
2.) The new bundles lack value (giving more room for a price cut)
3.) Phil expect Sony to drop the price

It's a typical marketing strategy. Make the consumer think the price went up temporarily. The higher priced skews, then drops in price allowing them to market a bigger saving to try to create rush demand for the holidays.

That is probably true but I just do not see them doing it. It is selling like crazy where it is. I do not expect the Xbox One to drop either since Sony is not going to but I do expect some great bundles (especially on Xbox) from both companies

I expect them to. I don't think the bundles have quite enough value to justify the price, and they're probably doing that to be prepared for a price cut.