We'll definitely see a price drop come March.
I figure they'll probably drop the price by $50 in March, then drop it by another $50 around the end of the year.
A $50 price cut should help spur sales for awhile, in Europe at least. Remember the 360's $50 price cut in NA at the end of last year? Sales were up for the entirety of 2008 compared to 2007.
In NA, a small price drop like that might do little more than the 360's price cut in Europe at the beginning of this year.