Why not? Undercut the X1 to keep selling better. 

You might want to think about what you wrote above..."People" would have to buy it to make it our of stock.....unless cats and dogs are starting to buy them now?!?

Or you are thinking way too much into it... Granted the wording could have been better but I think everyone gets what I am trying to say... I can nitpick too on your comment such as how you made a typo on "our of stock" but I intend not to unless I am doing it to my friends as a joke cause its good manner

Honestly if thats how you think but its horribly flawed logic for countless, rudimentary business reasons. Just look how long it took MSFT to remove Kinect when there was a fairly large consensus immediately it needed to go. Now you have a record setting sales performance and weak competition and you think they should cut the price?

There are so many reasons why it shouldnt happen, but after the PS3 launch i wouldnt rule any awful decision out, tbh.

There is no need based on sales. Theyre already bleeding money throughout the company. There is arguably nothing to gain in light of the competition right now. Cutting the price to stick it to MSFT is a forum fans wet dream, but would be a pointless money sink.