I think what they need to do is value add, not price cut. I would buy it if the following happened:
Get rid of the elite and core.
Give the pro built in wireless and a larger hdd. (Seriously, no wifi built in, is ridiculous)
Free Live gold.
Unfortunantly Microsoft make a killing on live subscription fees. They aren't going to go away ever. Which makes me =( I'm used to online gaming being free from the days of pc gaming and from my PS3. The only reason I can see for Microsoft charging for live is that they wish to shaft the end user. It may only cost a game a year, for say 4 years. But for me thats 4 games I won't have because of it. Not acceptable.
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