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I think Nintendo will drop the Wii to $149, and so Microsoft will cut the 360 to $149 a few months later to counter-act that. 

Like you said, it won't be $99, or $129, and cutting by only $20 seems worthless to me, so $149 seems most likely, with Kinect down to $99 (if it isn't so already). By doing this, Microsoft should be able to keep up momentum through the holiday, and give 3DS and Wii a real run for their money.



 

Here lies the dearly departed Nintendomination Thread.