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Infamy79, there was a price cut in 2007

http://www.engadget.com/2007/07/31/circuit-city-spills-all-the-xbox-360-price-cut-beans/

http://www.cnn.com/2007/TECH/08/07/xbox360.price.cut.reut/index.html

There was a $178 millions in profits only for the Entertainment and Devices Division on MS for the fiscal quarter ended Sept. 30, 2008.

http://www.microsoft.com/msft/earnings/FY09/earn_rel_q1_09.mspx
http://www.microsoft.com/msft/download/fy09/MSFTQ1-09.doc

On the hole (game divisions + eletronics + movie + entrateinement) Sony got $219.84 million profit fot the last quarter (July-September period)

http://www.usatoday.com/money/economy/2008-10-29-3703954179_x.htm

http://edition.cnn.com/2008/BUSINESS/10/29/japan.earnings.ap/index.html

For sure there will be another price cut on the xbox 360.