MS is definitely going to price cut 360 this year. There is no way they will allow Sony to price drop PS3 without responding with a price cut of their own.
I think MS is going to try to make 360 sales go completely mass market this year which will require price cuts to bring prices down to the $150ish levels for the base system. In fact, I bet MS drops the price on 360s before Sony drops prices on PS3. Sony can't afford to drop the PS3 prices as much as MS can afford to drop the 360 prices (360s cost less to manufacture than PS3s and I would bet that the gap between manufacturing cost and retail price is bigger with 360s than PS3s presently).







