Companies do business for gaining money, not for losing money or wasting money. You can't go with a price cut whenever you want, you need to do a profit on hardware sold. You can't cut the price by 100$ or 150$ because your competitor is squashing you. MS biggest mistake, IMO, was to put Kinect2 into any box, and to keep the price "enough competitive", they opted for a weak hardware, and also harder to develop for because of cheap DD3 RAM and esram to compensate to the very low performance of that cheap DD3 RAM. So, if MS now decide to release a new SKU without Kinect2 and without some features, with a price reduction of 129$(example), what you are getting in the end ? A stripped down Xbone with weak hardware. So, why you should buy an Xbone ?? When PS4 costs roughly the same and it's more powerful and multiplatform games will almost always perform/look better on PS4 !!! Whatever you do, MS is in trouble. IMO MS did a big mistake with this Xbone, they should have released TWO different SKUs, one with Kinect2 included, and the other without, but with a Far superior APU, better GPU and better RAM, so that they could sell the SKU without kinect2 at 399$-429$(with a more powerful APU than PS4) !!!!! MS did a big mistake, and now they will lose money to try to not be umiliated by Sony. They should follow the 360 way(and they didn't).... now they are in trouble.
”Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience, and the passion to reach for the stars to change the world.”
Harriet Tubman.