LOL Think they'll do it at E3? Usually Microsoft is pretty crafty about their timing.

Depends on the games.  You get two of the same kind of game, with one being an older $20~30 game now, and the newer one not really worth owning.  PS4 is a better console, so yes it is a worse offer.

Even if we ignore the PS4 being more powerful, better designed, better controller (IMO) and having more games, from a value point of view you also have XBL Gold costing $10 more per year than PS+, and not giving as much value.

I thought that this was what they said would happen, no surprise here :P

Not really surprised, since they said it would happen. Of course, there were some who wanted to believe it wouldn't happen. My guess is that they dropped for Xmas so the PS4 wouldn't dominate the US and UK, but guaranteed investors that they would increase the price once the holidays were over so they wouldn't be losing so much money on HW.

And as expected, the PS4 is starting to top the charts on sites, while the XBO has slowly started to drop. Well, except for Amazon, which is understandable, as they seem to be clearing out XBO Unity bundles by keeping it ~$349. I expect MS to drop price officially at E3, especially since they really don't have the greatest lineup for the first half of the year to spur sales at $399. Unfortunately for MS, Sony is most likely going to respond shortly after with a cut of their own, and I seriously doubt MS is going to drop to $299 to once again be able to compete.

I'm pretty sure MS always goes first.  Then, Sony. And finally, Nintendo.  If MS does drop it at E3, Sony will have time to prepare to announce their own, as well.  Though, they may wait a few weeks to see how the cut affects things, first.

And they still exist to sell to people without X1s.

I suspect when most of the remaining AC bundles are gone MS will reduce vanilla X1s to $349/$449. I suspect this will happen in a month or two.

I thought MS had a trillion dollars to lose in order to win the console warz? Seriously though didn't they say the price cut were going to be temporary anyway?

Time to wait for the drop in unit sales. It should go back to 349 after.

Last gen Sony were cutting earlier than MS... and since the situation is analagous (this time X1 is more expensive and selling less, so tables turned) I would agree with you, and it actually already started like this.