The Xbox 360's price will be cut closer to five months from now rather than five years. There is no way they will go five years without lowering the price. At the very least, they will add extra stuff to it in order to keep new customers buying the system. The sales of the 360 have picked up with the most recent price drop and some great games coming out and that will push sales over the holiday season. Next year though will be different and they will add something to each model or some sort of extra incentive if not an actual price drop. I guarantee though that within a year and a half, two years at most, we will see a fifty dollar price drop on all three models if not more and if not sooner.
With the Wii essentially the same price as the average price of the two lower end models of the 360 but yet outselling by an enormous margin and the PS3 out there and will lower their price in the next year or so, Microsoft will have no choice whether they like it or not to lower their price. Unless they want to settle into a 3rd place position which I'm not sure they'll mind since no matter what they do from this point, it will have done better than the previous generation which is always a major goal and accomplishment in this era.
I'll come up with something better eventually...
