Those price cuts are directly related to the weakness of the US dollar vs CDN dollar, not related to demand in any way.  Games also dropped $10 too.  Great time to be a gamer in Canada! 

 On Topic: I have to agree with others on this thread. MS's supposed shortage flies in the face of the fact that we all can find 360's on store shelves.   However, I know where I can find Wii's on store shelves too - for $350.  Unbundled. Yep. Price gouging in full force.   MS story of storages may have been true in January but now is an excuse for coming in 3rd for Feb/March.

Your right GTAIV will sell systems, but I think a price cut for 360 would ensure that the game sells 360s and not PS3s.  Afterall many PS2 owners will get the cheapest option since GTA is one of the only games they played on PS2.  If they don't cut their price, boths systems will benefit from GTA leaving 360 in 3rd in NA.

what??? i can easily find a 360 at any local store or online store. It's not hard to find at all (unless you live at a Wii warehouse) lol

Given the current state of the dollar, a price cut in NA would really hurt Microsoft's profits. If there is one, I doubt it will be more than $50.

Nintendo has made supply constraint a popular spin on sales. The Wii is and has been supply constraint since release even if it didn't sell out everywhere if you can't buy online that is suply constraint if you can't buy in amjor metropolitian area(aka sf bay area) it is supply constraint. It affects sales majorly and is legitimate.
If you can't buy the 360 in one store it is supply constraint but the sales impact is negligable if you can't buy in a few stores the sales effect is neglible but a little more noticable(a few hundred instead of a few dozen). It makes me wonder if they mean that certain models are supply constraint. If so than sales would still be affected and perhaps notably too but also you have no idea how many people would opt for the arcade if the constraint continued. It did appear in January that stock was low in a few stores in SF so maybe there is a bit of latent supply issues here like the earlier part of the month or something. I don't know really.

Anyways sales are still up from the previous year and the PS3 got a bigger boost. Right now in the US they are statistically tied but this is alos their stron gmarket. I can definitely see them doing a price cut for the release of GTA 4.

I don't think they need a price cut.I would be great sure but its only like what $399 for a 20g with accessories. In my opinion thats not that bad.