I don't know if MS needs to do a price cut. I thought they were going to do one, but they might not need to. I thought Sony would have a longer bounce with it's cut.
Kinect this year, is certainly more bang for your buck than Kinect last year, with the added features of voice on Netflix, Hulu+, etc. Plus with the update, and Bing search, it really might be extraordinary. If it works as well as the voice search on my Windows Phone it could be revolutionary. (I realize it's not a gamer thing, but many people might want it after they see how cool and convenient it is at a friends house. They buy and Xbox, later games too. More gamers=more game makers = more good games, everybody Wins!)
I hope it they don't do a price cut, it's because they are going to subsidize some killer hardware on the Next Xbox (DX12 please!)
I think Wii will still do Ok, and PS3 not too far behind Wii.