I don't know about "responding" I think the probably already had a holiday plan in place. But I guess now they would at least match the XB1 price somehow.

No need.

New sku minus kinect, not price cut. Big difference. If I was in the market for an XB1 today I would have to pay $450, that's only $50 less than what I got it at launch. (Because I would want Kinect model).

They're not devaluing, they're becoming competitive. And they're doing it to beat PS4, not because it's selling badly (not that I think it's selling fantastically either).

Some incredible reaching going on in this thread.

If they dont, they will be making the same mistake MS did last gen with PS3.... not killing it off when they had the perfect chance to do so.

There's really nothing they can do at this point. The momentum has swung in Xbox favor. They dont have the games to make any noise. Xbox One offers the best in console gaming. The best holiday lineup and the superior online service to connect with friends. Thank you Microsoft.

Not as such, not by slashing the price, that would foolish when they have such a massive lead and wide weekly margin on the competition (not to mention the current state of Sony's finances). I think they'll try to counter somewhat by offering more value for PS+ customers, perhaps some great deals on Black Friday with increased discounts for people who trade in their PS3's etc.

I agree with that

Joke post??

I doubt that sony can afford to drop the price to make a profit. I think they will ride it out as long as they can.

but hey who knows..

Doesn't matter to most people that it is a new SKU.  Most didn't want Kinect, so the fact that the new SKU doesn't offer it doesn't decrease the value proposition.  So for most they are getting the same value now at $350 as they were before at $500.