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I don't think price cuts will necessarily help the 360.

They are in a magic spot right now where the PS3 is far too expensive.
A lower price won't change that, but a low enough priced PS3 could. Although, I don't think a low enough priced PS3 is possible (and I think that price is $249).

The average consumer wants a Wii, cutting revenue for MS hasn't changed that.
(i.e., MS could have it coming from both ends)

Honestly, I think there is enough momentum in NA and Europe to ensure the 360 stays ahead of the PS3 forever....