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A price cut in March is a no-brainer.

I'm leaning towards a price drop down to $279 for the X360 Pro (someone had a good argument for it, can't remember who).

It will spike the X360 sales to a nice lead world wide, and hopefully well above a steady 600,000 consoles per month, because that's what I need for my prediction to fullfill (+10 mill X360s sold in 2008).

Sony won't counter with a PS3 price drop immediately, because they are in the same great situation now, that MS was in during the fall & holidays of '07, having good momentum and healthy sales. But if the lead for X360 becomes too wide, then Sony will drop in mid- or late summer, and probably cut $100 like last time.