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Halo 3 moved over 140k consoles in just the first 3 weeks after it launched.

And again you really are out of the loop aren't you?  The 360 didn't get a cut last year, and the redesigned 360 has leaked mobo photos, Steve Balmer leaked info, memory card removal and then flash drive support came out, etc.  It's pretty clearly getting a redesign.

Also, only a $50 cut for a 360 yet you fully support the notion that the PS3 is going to afford another $50-$100 cut this year?  That's pretty rich.  The PS3 automatically costs ~$80-100 more than a 360 to produce because of bluetooth, blu-ray, and wi-fi.  And yet they are selling for the SAME PRICE!  Once the redesign is done, the 360 could slash $100 off without even trying.  Then bundle in Natal for just a $50 increase.  The PS3 on the other hand, even if it gets a $50 cut this year, will cost $100 to bundle in Move with the console (if they do the full move which is controller + sub controller + eye + game).  They may leave out the subcontroller and bundle it for just $80 more.  Either way, prices this fall will be this:

 

These are my predictions.  Feel free to quote me on this:

Arcade 360 Slim - $149 or $99 (with Natal - $149 or 199)

Elite 360 Slim - $199 or $149 (with Natal - $199 or $249)

PS3 base model - $249 or $299 if no price cut (with Move - $329 or $349)

PS3 larger HDD model - $299 or $349 if no price cut (with Move - $379 or $399)

Wii - $149