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So, both the 360 and PS3 will have price cuts, the PS3 also gets a slim fit redesign. 

 

The 360 just has a price cut.  It doesn't have a smaller case, etc, so price-wise it is still going to cost just as much to make.  The PS3 has a price cut but it is actually cheaper to make now, which will leave more money for things like marketing, money hatting for developers or whatever.  Hey this is all just a grand money game in the big picture anyway.  Sure MS's cut will help move some consoles but Sony's slim redesign and cut will help a bit more imho, especially in japan.