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I think they have to cut price. I don't think they'll do it right away so they don't look like Sony is forcing their hand, but once they've realized that they've fallen behind the PS3 in worldwide weekly sales they will have to. Right now the 360 can't afford not to sell better. The PS3 is all about the future--2008, 2009 and beyond. Microsoft can't bank on logevity the same way with the 360. They need the continued press of the 360 selling better than the PS3, and if for even just one month that changes it can have a ripple effect that eventually leads to a third place finish.