As the title says, a price cut is the only thing that can help at this point. The ps3 has been gaining a lot of marketshare, and has several enhancements for 2010, a lot of added value and the extra source of revenue with the PSN premium stuff that we'll see soon.
The PS3 is sprinting ahead.
Natal? I dont see a lot of people buying a $150 add-on, or a $300 console that was supposed to be a cheapo deal in the first place. Natal is just overpriced, is focused on a market that the 360 really doesn't have; casuals.
The only thing left is a 360-slim and price cut. For the 360's sake they need it.