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I figure Mircosoft wants to wait until probably August or Sept for a few reasons:
A) Don't think a cut will increase PS3 sales much as it still lacks killer apps
B) A price cut now would be forgotten about by the holiday season, but one done late in the year, coupled with GTAIV/Halo3 would give them tremendous momentum going into the holidays
C) They'll have the Falcon 65nm version out by then which is cheaper to produce

If Sony dropped the price in Europe, then MS would be forced to meet it or lose that region.