Price is not a factor with the 360 here in Europe, the demand is just not there. No amount of price slashing will make it more appealing in the long run imo.
Don't get me wrong, I actually think the 360 is the best console of the lot so far but the people of Europe (and Japan) just don't seem to want it.
The pricecut will have a similar effect to that in Japan; massive spike that dies down very, very quickly I think.

@Mummelmann
your reason do not make any sense to me.
definitely there is still have high demand for cheaper console in Europe.

If demand was there and price was a big and defining factor, then the 360 should be ahead of both the PS3 and Wii weekly since long ago by now. It is not, thus demand is lower than for the two others.
How is that hard to understand?

LBP is gonna be one awesome game but you people expecting it to become the ps3 saviour are setting yourselves for disappointment. Do I seriously need to list the games that have been hyped in such fashion?