The console(and more specifically, its software) targets a core audience(older males) as its most popular titles are shooters, sports games, and racing games. This is why I think a price drop wouldn't help the 360 all that much, because it would still appeal only to that same audience.
Since PS3 sales are so low, it would seem as though the 360 should have seen significant increases in sales, but it hasn't. Contrary to what you read online, most people do not have a chip on their shoulder about Sony or the PS3. Many people want one, but just can't afford one or just don't want to pay the money for one or don't see enough games for it yet. Of the six active consoles and handhelds, the 360 has only managed to outsell the PS3. So with the PS2, DS, PSP, and Wii as more popular systems, it looks like people have decided to enjoy those until they justify the purchase of a PS3.
Consoles owned: Saturn, Dreamcast, PS1, PS2, PSP, DS, PS3
