There is no chance they're going to drop the price before the console has even launched. As it is, I still believe Sony is going to be losing money at their price, and the Bone is probably going to be losing money even at $500. Considering the tech, and the new "advanced" Kinect packed in, etc. etc. etc. etc., no I don't think they'll be dropping the price at all.
And honestly, their DRM announcement changes very little. I'm sure there's more to it than "oh sorry guys, we'll just drop the idea entirely. Even Sony is being sneaky about "not having DRM", and there's no chance in hell that MS is dropping the idea entirely. Not when publishers like EA want it so badly, and are willing to give them exclusive content to help make it happen.







