A $50 drop would nullify any sort of momentum gain (in terms of a ratio) versus the PS3.
However, the drop won't hurt what PS3 is doing. IMO, the X360 should start selling ~30k/mo more due to a $50 drop, and the PS3 should start selling ~15k/mo more due to the $100 drop.
Ultimately, it's a good step, but to actually conquer the holidays, MS NEEDS a $100 drop. If it dropped the price $100 @ E3, then MS would just about have this year's US and European Christmases wrapped up for a solid win.
Do the Japanese buy more stuff around Christmas? Go look at the charts, and you tell me. Hardware and Software sales are typically around 4x that PER WEEK versus non-holidays. The big difference is that they don't see a real major boost in November that's real convincing (it's better, just not US better).
Back from the dead, I'm afraid.
