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i don't think two price cuts of $50 would be as good as the $100 price cut. How far apart would you make those price cuts? If they're too close together, then definitely there would be a lot of angry consumers (I think 1 year would be too short for consecutive price cuts). Also, could you imagine how "desperate" sony would seem to all the xbox fans... especially since the slim would sell decently.

Cutting the gap for second place by 4 million units by the end of the year is kind of crazy. If they can get GT5 out this year then maybe they could cut it by a third (I believe MS grew their lead by 2 million units last christmas so I think 2.7 with GT5 is possible).