I don't think it'll happen, the 360 is getting old enough to peak anytime now, probably 1st quarter 09 when it nears 3 1/2 years of age on the market (Yes, the PS2, for instance, peaked later than that, but seeing last gen and the need for rapid price cuts 2 years or so into the 360's life I don't expect the 360 to get that old at all tbh). The current sales with its ludicrous price point should also be a hint, lowering the price even more won't do much imo since it is already dirt cheap.
@mikeB; I don't see Japan as very important this gen, right now it seems like no one will perform very well there this gen and none of the three has even a slim chance of doing PS2 lt numbers there imo.
@Ovoyvoyv; Regarding your sig; did Bondevik really say that? 
How amazingly straightforward of him! Then again, he was rather direct and blunt about the Afghanistan invasion as well... (He actually impressed me for the first and last time then).
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