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@Crashman; pricedrops don't help if no one wants your product, and that is the essence of the 360's problem. The X-box had numerous pricecuts and was always very cheap, but failed to sell well even in the mass market range.
There seems to be very little interest for the 360 outside the US, so it has basically one market in which to sell.
The way things stand now it is very unlikely that MS will gain more foothold in Eu/Others or Japan, going by current demand and last gen there seems to be a very small market for them there. The PS3 is improving in every market and is outselling the 360 by a fair amount in every market outside of NA by now and the numbers are likely to increase as this years very anticipated titles arrive.
All MS can do is keep the NA market buzzing and hope numbers in EU remain decent at least.

I know they could cut the price, but like I said; I don't think its the price holding the 360 back, its the overall image. Peter Moore himself, while working in the 360 division, said that they had an image problem and a big part of his job was to fix it. He failed at it, as is evident in the Japanese market especially, and he knows it. I think that is partially why he quit.
All in all, don't expect the 360 to sell much more than it already does, there's really not any way to do that with only one good market.