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Cutting the price right now wouldn't change things for MS, it's already a lot cheaper and still sells less than the PS3. Neither will Natal, since similar systems never sold millions either (see Eyetoy sales).

Here in Europe I can get a 360 arcade model for 120 euros or a PS3 for 249 euros. It's twice as expansive.

Guess what ? PS3 already sells a lot more. People don't see much value anymore in the 360...

There's no 'turnaround' to see anymore. PS3 sales will stay ahead, unless MS greatly improves 360 exclusive content...