I don't believe the recent 360 price cut will have much of an impact ... its only for Europe which appear to of already decided that 360 is going to placed third in the region.

I believe a US / Australian price cut would have much greater effects due to the popularity of 360 in these area's and the increased potential for consumers to consider buying 360 over Wii. ( esp. in Australia were people like me refuse to pay around $680 - $700 USD for an Elite 360 and are awaiting the inevitable price drop )

 Do you really think it is the price the gets people excited about the Wii?  It's the wiimote/wiisports.  People don't look at the price and say "Oh...this is the cheaper one...Billy and Sally won't care."  As much as you don't want to think about it...if parents are buying consoles for their kids they are doing so to PLEASE them.  If the kids want the Wii, a 360 isn't going to do the trick.  On the other hand, if the kid wants a 360....50-100 dollars isn't going to matter that much, honestly.

I don't think it matters much until the next gen consoles get closer to PS2 price points... Wii has lots of room to drop price. If there are any long term affects Nintendo will take action to ensure they retain market share but with Wiis so hard to find still how will this affect things other then 360 improving against the PS2 and PS3?

I think the PS2 has more to worry about then any console with the price drop.

 Then maybe Sony's speculated answer to this price drop will be a price drop on the PS2. £50-60 for a PS2? now that's a not bad at all.

@ aprisaiden

im waiting in Aus for a price drop too.

Arcade is 209 € for cheapest here. Premium 279 €.
Wii for 245 €.
Ps3(40 Gt) for 399 €.
Ps2 for 139 €.

And everyone of them are plentiful here.(in stock)

Many people (incl. myself) think a 360 (or PS3) purchase does not make sense without HD TV.

So I think this pricecut will not get many parents or casual gamers on board, only some more hardcore gamers.

I don't think the Wii has much to do with it, neither in the reason for lowering prices nor in the effect it will have. Japan is pretty much a lost cause, but they still have some hope in Europe. This move will likely not have a big impact on the Wii, but it might make the PS3/360 decision quite a bit harder. I'm not sure it'll be effective long term, but it should help the 360 be competitive in Europe and keep the PS3 from really pulling away for a while.

Holy crap, you Swedes are eating it.

Heck, all you Europeans are. 2500 SEK = $412 USD.

 Don't forget the dollar is dropping like a rock. At this rate the US will be getting price increases before price drops.