I think they'll cut the price once more (Q4 this year) by about 50$ and then attempt to up the perceived value by adding features, bigger storage units, online content and other incentives instead for some time, those are kinder measures for the bottom line and investors simply won't allow them to slash the price and remain at a loss or barely profitable position throughout the console's lifetime.
It's not only losses that are the concern here; there is no guarantee that a lower price will help much with sales at all if the core product simply isn't appealing (which it isn't, in my opinion). Being dirt-cheap did virtually nothing for the Gamecube so the strategy of slashing and slashing at the price is likely not worth it. They'll likely consolidate with the fact that they simply won't have a large installed base this gen and try to squeeze some much needed green out of the white box.
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