Everyone says that but I don't see why. Sony are making a profit on each unit sold. They are guranteed to win this generation so why drop the price if its selling well at $399? 

Any price cut would obviously be good for the customer, but it would also indirectly be Microsoft confirming that the PS4 is raping them in Europe and it would show how desperate they are.

I think it's more likely that Microsoft will have bundles with 1 exclusive game at no additional cost, like Xbox One + Sunset Overdrive for $399/€399.

Looks like this was put up on the mobile site in error. I expect MS to hold the line at the existing price, but instead of offering price cuts, they will bundle games...works out better for them, as they don't have to give as much away.

I also fully expect Sony to match whatever price drop MS gives on the XB1 with a similar cut on the PS4. There is no way Sony is going to let MS get any advantage this gen.

True, but I think that the disastrous reveal of X1 has hurt Xbox's reputation for the rest of the generation. If X1 never had those policies and restrictions, they might have been winning in the US and UK, even if the price was higher than PS4. The ruined reputation is why I think that If MS lowers the price now, it wouldn't hurt the PS4 significantly. In fact, even if the PS4 is $50 more expensive than the X1, I think PS4 would still sell more than North America and the UK. 

Also a company like Sony, which isn't doing very well financially, would want to make as much money as possible. Right now I think profit is more important to them. 

At this point, the damage from the E3 reveal last year is less of a factor than the incredible amount of news articles showing that the XB1 is inferior to the PS4.  MS can spin news stories all they want (and they have)...but the one thing they can't spin (although they have tried) is that their console has lower performance than the competition, yet sells at the same price (higher, actually, if you count the added costs of the accessories).  They try to put out articles saying that "resolution doesn't matter" or that "30fps is all you need"...but customers know better...and they vote with their wallets.

Lol ^^^ Customer don't know shit... They just buy what is hot period.... There is no such thing as intelligent mainstream buyer.... Most of the number one brand in any given market is nowhere close to the best one or offering the best deals... It's just the most hyped one at a given time...

yeah PS4 is more powerful we know... It has yet to melt our eyes by a significant margin and even if it did it's still a pretty weak machine all things considered... As a matter of fact more powerful isn't what makes a console a better bargain... It never was

Which countries, specifically, would those be?  The ONLY European country that the XB1 is selling at any significant volume is the UK.  Other than that one market, the rest of the EU might as well not exist for the Xbox!

Sheesh, how many times will they do this? This is like the third one barely 9 months from launch.

Um, I think the countries where the 360 did alright in. So France, Germany, and maybe some other Western European country. 

Excellent observation here by AZWification :D