If I was MS I'd wait and see how PS3 performs before pressing button on any price changes.
1) I wouldn't want to look like I was falling over to keep my product cheaper - that's close to admitting that at the same price the other product is superior and they are simply the cheaper brand
2) I wouldn't want to give away margin I didn't have to - I'd want to gauge the degree of boost the PS3 price cut gives then determine the best price point for my product based on that, rather than base it on estimates of that boost
3) 360 is selling fine at current price point given economy and is now very secure in US. They have time to wait and see a little before jumping the gun
4) Clearly MS already have a response and SKU change lined up, and it would look better to stick to that rather be seen to knee-jerk respond to a competitor.
Of course, if PS3 sales skyrocket then MS will quickly push through some fairly big cuts to counter it - but until they saw evidence for that I suspect they'll stick to plan and see what sales PS3 has over next 4 weeks. They have an 8M unit buffer, they can afford to lose some of that to make a considered response rather than rushing anything.
Try to be reasonable... its easier than you think...
