Did you remember to take VAT off of these prices? Prices in USA don't include VAT, those which you just posted do (and that makes a big difference). Besides, anything is going to look pretty expensive these days if you convert it to U.S. dollars, with the dollar being very weak as a currency as it is now.

Wasn't there already a recent Price cut just for Canada? I read it on this site! Anyone?

^ it was more of a price adjustment

More fuel to the flame:

Xbox 360 price cut coming this month
Trade sources point to Wii-like RRP as Microsoft looks to capture family market

MCV has it on very good authority that Microsoft is planning an Xbox 360 price cut at the end of the month, which will allow its lower-spec Arcade model to compete with Nintendo’s Wii on price.

In what is being seen as a significant move to attract the family market, that would mean a dip from Arcade’s current price of £199.99 to something closer to £179.99.

It is unknown if Microsoft’s other Xbox 360 SKUs, the Premium pack and the Xbox 360 Elite, would enjoy similar price drops. However, the platform holder introduced a price cut on all three models in August last year.

One trade source told MCV: “A few publishers have confirmed the news to us, and we’re aware of some price movement is coming. The major chain retailers have all been told.”

Other high level trade sources have also heavily suggested the move is coming, speaking off the record exclusively to MCV.

Microsoft declined to comment on the cut, telling MCV: “We don’t comment on rumour and speculation.”

Australia just got a price cut on at least the core and pro. But it is more likely a exchange rate adjustment

Stating the ps3 would be in deep shit may be a little of an overstatement. The race is long and hard. Dropping the price a few months earlier isn't going to determine the winner of an 8-10 year console war.

Its not that people wouldnt want a PS3 still, but if the 360 gains too much of the American market its hard for a more expensive console to sell more. Word of mouth is the best way to market anything, so if your friend has a 360 you might get one as well. Thats what seems to be happening right now.

And just to add, a GTAIV developer said that the 360 version of GTA has better framerate and loadtimes. He says the DLC is substantial, but its not another Island or anything that large. He also says the PS3 version is warmer(whatever that means). But, what he did say that caught my attention was
"the PS3 has longer loadtimes...without HDD install." So im wondering if there is an install option for the PS3?

He then says that regardless both versions are beautiful but the 360 as the lead platform gave it an advantage.

Well here in Spain (where the XBOX 360 is not selling that well) , there is a promotion that has been going for a while now and ends on the 15th of March.

It gives a 50 € discount on XBOX 360 that are at least PRO , for that you need the bill of something you have eaten at Burger King of at least 8 € and that ticket from the image.

 Then you bring those two to a GAME store and there you go!

I agree.

I also agree with Jandre that this could be the significant turning point of the year -- although "deep shit" seems a bit extreme. 

I think if the arcade dropped to 229 in price nintendo would drop the Wii to 199, or maybe even 179 to ensure the image of the most cost effective.