I think it will help, but a redesign "slim-line" with built in wifi and a 60 gig hard drive for $299 would sell like crazy... A 50 cut for the existing premium is too little IMHO.
For those that think they need to have a game to go with the price cut, that's not necessary. The 360 has a huge library of games and lots more coming. Anyone considering a 360 for a better price are more than likely not thrilled about $60 games. I suspect they won't be looking for new $60 games nearly as much as the back-catalog of budget games that exist...
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.
