Battle of the HD consoles.

[Mummelmann]

Its hard to predict what effect a PS3 pricecut will have at this point, or, say, right before the holidays. But it would certainly have an effect, no doubt about that.
In the end, the 360 and PS3 will be very close this gen and I think it might be a photo finish (which is amazing for MS and not so much so for Sony who have been on top for well over a decade before).