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I think the price cut is part of the plan from the start. Last year they shipped 360's with different CPUs on the motherboard getting a cost savings so they passed that along to up sales...

This year the GPU has been changed, again saving money so they will pass the cut along to consumers so they can again push more product.

Next year they intend to combine the CPU and GPU on one chip, and again they will cut the cost and again pass that along...

What is so desparate about a natural part of the console cycles, which is... Cutting costs and driving the price down to a mark where they can sell more units? Sony is doing it too... Cut costs, slash prices.