Can't say really.
If it was me running the Xbox division, I'd immediately drop prices by a hundred. The boost to sales could be big enough to keep the 360 ahead of the PS3 for most of the year, unless Sony decides to drop prices as well.
Of course the suits at Microsoft care a lot more about making money than I do. They're probably calculating how long they can afford to keep selling the 360 at the current price (making money) before dropping to boost sales above those of the PS3 again.
There is probably a bunch of things that MS is waiting for before dropping prices, like Sony dropping first, 360 sales dropping, a big PS3 game boosting the sales of the competition etc, and they're waiting for one of more of them to happen. Shouldn't be too long now.
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