If Microsoft matches Sony price cut, would the PS3 still do "gangbusters"?

[Zomb1337]

If Sony does $100 price cut, Microsoft might do 360 Arcade for $150-$180; 360 60GB for $250-$280; 360 Elite for $330-$380. Microsoft knows that the more consoles they sell, the more games, accesories and DLC they sell and I believe Microsoft is making money on every 360 sold.