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OneKartVita said:

That's some serious domination.  The question now is how long until Microsoft drop the price again because they're getting slaughtered at parity.  Sony with such a strong first half of the year line up are very unlikely to drop the price and will likely comfortably outsell the x1 at $50 more 

Microsoft has seen that Sony is willing to sell the PS4 for $299. They know that Sony would just price match a $50 price drop. PS4 would maintain price parity, nothing would change regarding sales ratios, but this decision would lower the Xbox divisions profitability. Sony played there cards perfectly to demonstrate this.

Microsoft's best move is to stay where they are, or eat a $100 loss price cut while hoping Sony isn't willing to go that far.