MS price cut in Europe is more like currency adjustment. Only place I would truly call price cut for them would be Japan and it definitely didn't help there.
I think MS is looking to have profitable gaming division, if they don't need to have price-cut and still move about the same units as Sony PS3 I think they will just stay put and let their 6 million lead absorb the parity in sale for this year.
I don't know, people are always quick to attack MS about their lost but Sony went from a very profitable gaming division into huge money loosing venture. Personally I think MS is happy where they are at. The consoles are still selling (ie they are growing), their on-line is doing well and generate money and most important of all 360 have sold enough 10million in the US not to be ignore by 3rd party developer. Royalty from software is like free money.
