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The 360 is back to selling under 200k weekly this soon after the Halo 3 launch. This probably means that Microsoft will consider it a prudent move to drop prices before the holidays, although they wouldn't exactly do badly even if they chose to wait for 2008.

Of course that's assuming they were waiting to see how long Halo 3 keeps their sales up. It's also possible that they'll be happy with just outselling the PS3 during the holidays, and save the boost from the price drop until well into next year. They've probably realised that the Wii is going to be #1 no matter what they do, so maximizing profits for the rest of the year might be a prudent move.