MS while having lots of cash, is also under pressure from shareholders.
Most of their ventures beyond Windows/Office have been failing.
Throwing more money at Xbox to somehow maybe achieve parity at a financial loss is not attractive.
MS can certainly still be profitable with Xbox at even 1/3 of PS4's marketshare,
both consoles were marginally profitable from the beginning and should be more so over their lifetime.
That price would impact sales is obvious, Sony's price was announced before release,
so if MS had a problem with that they would have subsidized XBone more from the beginning,
in order to best leverage the "buy what friends have" dynamic.
Their new CEO comes from the Server/Internet/Bing/Enterprise (Big Business Client) side of things.
Throwing more money into the Xbox pit, subsidizing "dedicated servers" instead of offering top notch server hosting that they can sell to every server user in the world, seems a distraction.
Quantum Break is supposed to have MS producing spin-off TV shows? Sounds like a distraction.
Sony is already winning this gen, and Gaming is already one of their few profitable divisions, so investing further in it will be seen to have less risk for Sony. Dropping prices at this point will just be seen as a low risk way to swing "buy what friends have" dynamic to increasing their marketshare further.
MS doing so at this point would be a weak reactive strategy to "look good" at major cost to shareholders.
