I'm not even going to bother listing all of the reasons why that makes no sense.
Okay, one. No, three.
Maybe the 360 is winning because the 360 is a third of the price of the PS3 in Europe (half for the Pro)? I don't know, just a guess.
Why on earth would a price cut make anybody respect a system more?
And even if by some cosmic event Europe now loves Microsoft, the price cut will still help Sony.