Although I think MS really lost an excellent opportunity to drop the XBox 360 by $100 last year (mainly due to the RROD), it is not in a bad position right now against the PS3 and they don't need to worry too much at the moment ...
Even though the PS3 is outselling the XBox 360 in most regions, the PS3 still trails in total userbase and will not surpass the XBox 360 in the near future; if they wait until April or May (or even November) the PS3 will have not eaten enough of the XBox 360's lead to actually matter.







