Your sig is wrong. MS does not need (at least desperatly) to cut price. Sony absolutely does, as they are truly desperate and must stimulate sales.
Really if you consider the high tech consoles to be in their own war regardless of Wii as I do, 360 is sitting pretty with time on it's side. The choice between 360 and PS3 is all MS needs to worry about, and that choice will always go overwhelmingly 360 with prices (and game support) as they currently stand.
Therefore if they want to milk profits MS doesn't really need to cut. They will wait for Sony to make the first move, then cut.
BTW, the idea that there is some connection between this Blu_Ray player and a PS3 price cut is stupid. First, there's no law that says PS3 must be cheaper than any Blu_Ray player, and second, for an extra $100 you get a powerful games machine with PS3, which still gives it plenty of value over that 499 Blu_Ray player. In fact, games players are bought for games, so there's really little relation at all between PS3 sales and Blu_Ray player sales, or there wont be in the long run.
