I think that, despite the fact that MS didn't sell-through (retail->consumer) as much HW this holiday as their competitors did, they *did* sell-in (manufacturer->retail, which is where MS gets their income) a huge number of consoles.
They also sold tons of software. On top of that, they are now selling what is likely a cheaper-to-make Pro model (120GB probably costs less than 60GB these days, due to mass production savings), relabeled as an "Elite" -- they didn't really do anything, in terms of a price-cut, and thus revenue reducing -- they just relabeled and updated a product to be more cost effective to them, and more attractive to the consumer.
Good times ahead for MS, I think.