If Microsoft waits to see what happens and the PS3 starts to pick up some momentum, it could spell disaster for Microsoft. As bad as the PS3 is doing, they are still in the hearts and minds of a seriously large gamer base from the PS2 and the battle is far, far from over. Microsoft needs to match the $100 cut to stay the decisive price leader. If Microsoft thinks that they will win this round with an equivalently priced machine, they are dead wrong. People are putting a premium on the BR disk player even if only a small amount and in my opinion, the xbox 360 MUST maintain a $100 cheaper price to continue to stay in the lead.
My prediction is that MS will blink first and only do $50 across the board. It will cost them dearly in the long run as this point will prove critical in this generation (in the U.S.). They'll realize the $100 cut was smarter but it will be too late and the PS3 will have the momentum it needs to regain the long-term lead and put the 360 firmly in the rearview mirror.
I hate trolls.
Systems I currently own: 360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong. Yes, Pong.
