The new price cut can't raise sales over 170k permantly. I say this because aside from the hardware issues that are slowly but surley going, the 360 has a solid online and a good versatile games libary with a bit of everything and for $199 it is a steal.
If it cant, in my opinion that will be a double blow for MS and the 360 because
1) They can't expand their install base as much as they hoped.
2) They will suffer a significant loss in terms of $$$
So they will ultimatly fail in my opinion. Not to say it is a bad console, it is a good console, hell i thought bout getting one. But realisticly the PS3 is at $400 and it can sell in the 150-210k range easily and the Wii is at $250 and it can sell 270k + easily. So saying the 360 is at $199 and it can't sell 170k is an EPIC FAIL on MSOFT part.
If they can't, in my opinion they should give up on the whole Games Buisness because they are at $6 Billion loss and arn't making significant ground to warrent themselves a new console. I think they should stick to what they do best, software.