No need to wake up. The sleeping giant that is the 360 will make up for any small gains in the US during the holiday season without question. A price drop, 60gb SKU, lots and lots of good games. No reason the 360 will no see another 1 million+ Christmas again.

We'll see what they do but in all honesty, they probably have anticipated MGS4's release seeing as it was the most anticipated title for the PS3? They have a whole department dedicated to this type of stuff.

I've never seen a wii fit commercial here in Canada

No. MS is still in their hermit cave hiding their heads in the sand.

Advertising a $279 is no marketing strategy at all. A price reduction THEN marketing blitz will have a much greater effect. It does not matter if you have the games, if no one can really afford it, or want to pay more vs. the *superior* Wii.

There are commercials for GT5 already? Doesn't it come out next year, or do you mean GT5P?

LBP? When is that game supposed to be released anyway?

I disagree.  Sales are still up over last year without a price cut.  Remember if thy sold an extra 25,000 consoles a week over the 60k they do now due to a $50 price drop, they'd be out 3 million dollars ($50 x 60,000).  The extra 25k would have to produce at least 3 million dollars for them to recoup the losses from cutting price.  And that's assuming none of the extra 25k would've eventually bought one anyway - because that's another $50 for each one of those.  And that's money NOW, versus earning it back over the three or four years (maybe) these people will have their consoles.  So you need to add in interest too.  

Now I am guessing at 25k.  It may be less, may be more.  But they aren't going to give up 3 million+ a week in revenue just to have pretty NPD numbers.  Remember MS only gets $10 a new title, approximately from 3rd party software sales.  If the 50% of the people bought Live Gold, they'd still need to sell an average of 10 titles per new user to make up the difference.

Anyway the point is that price cuts are costly.  It's not something these companies just do for fun.  The consoles and services are not free to produce and the companies are all trying to make a profit here.

Microsoft shouldn't cut their price. Sales are up year on year anyway. They need to continue to focus on profitability.

It would be more successful if they cut the price of arcade down to $199.99 in america and had the Pro be $249.99

what they need to do is drop the price and it will sell alot more

The price will fall before the end of the year, there's no doubt about that. If the June NPD numbers are miserable enough, it will happen sooner rather than later.