Price cuts and deals like this when the console has only been out for three months aren't done because a company honestly feels it can push ahead. They're done because the company is desperate to just stay in the game.
The PS4, according to VGC, has a lead of about 230,000 consoles and climbing in the UK. That is a significant gap this early in the race. It's outselling the X1 by greater than a 2-to-1 ratio on a weekly basis for the last six weeks in a row. It also has yet to sell less than the X1 any given week since the PS4 launched there. Impressive considering how limited the PS4's availability has been.
The fact is that with this deal the X1 is still more expensive than the PS4 and even with the free copy of Titanfall, which will probably be for a limited time, a potential PS4 buyer could buy any game they wanted and spend no more than someone who buys the X1.
Also, this focus on a single title saving a console is highly misguided. One great game releasing for a console starting to struggle will not, alone, help it against a console that is able to sell out constantly despite not having any top-shelf retail exclusives yet. The original Xbox had some amazing games on it but even they couldn't help the console sell more than 25 million over 5 years.