I would say it won't increase it 100% like the PS3 drop did. However, I think it could brig the X360 upto 50,000 units a week. This is GREAT news due to Madden, Stranglehold, Blue Dragon, Medal of Honor, and Bioshock coming out in the next 4-5 weeks.
A $50 pricedrop, although not what I wished for (I've been advocating a drop since Gears of War's launch last year), I believe there is an inerhant strategy:
Microsoft drops the price $50, and starts clearing out the ~1m remaining X360 consoles left unsold. By the time these consoles are sold (probably right after Halo3 launches, and sells through lots, and lots of units), the Falcon will be in production - saving MS more and more cash, and the more reliable system.
At that time, MS could easily decide to drop the price another $50 before Christmas to dominate the US market in Nov-Dec with a $199 core (as we've heard about).
Back from the dead, I'm afraid.
