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Scientificreason said:

Agree and what gains ms has now will be lost  in, 2015.. It's a short term fix that won't help in the long term.  Sony is waiting for a price drop to have maximum effect.  Ms had made it hard to ever go back to 399.

I don't see XB1 ever going back to $399. And this price cut just makes them competitive. Which is great for them even if its in the one region. 

I commend MS for fighting this hard, it doesn't surprise me one bit caue earlier this year I had been saying that the 8th gen is going to be another price war between sony and ms. I predicted that by the end of this year we would have at least one of them be $299. Technically none are, but a $350 XB1+game is technically under $299. MS will keep dropping there price, and months after sony will match them. Rinse and repeat. hence my prediction that befall 2015 we will have at least one of them be priced at $249-$299. And by fall 2016 we will have them between $199-$249. 

A price war is the only option MS has to compete with sony. When they take the free game out of the sku, they will probably be annoucing a $299 price point. I expect this to happen around E3 2015. Funny enough, when i said this some heer were saying that the prices wouldn't drop that quickly.