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I stand by this unrefutable truth:

Microsoft already made their huge move (under $200 X360), and they WON'T have (read CAN'T without mutilating their Games's Division) a price cut in ANY territory until very likely 2010. If during the next 12 months they drop the price of any of their SKUs by as little as $50 it'll be undoubtedly a fire sale, 'cause no one, NONE, would reduce the price of a product as such an alarming fast rate it it wasn't deep in trouble.

However, Sony still has a price-cut move left and I believe they're saving it for next-year when Microsoft won't be able to do nothing of the kind to counter it. MS is definitely expecting to bank hard on this Christmas, specially with Gears of War 2 gracing their holiday lineup. Gears 2 + low hardware price = winning combo, no? We will see January 1st if Microsoft won convincingly this X-mas or if on the contrary, their calculations will cost them an early exit from this generation war.