I bet you Sony mind One hell of a lot, MS kept this cut quiet and it has caught Sony and indeed Nintendo off guard.
It's also been increasing due to the 175w Falcon model is quite,runs very cool and just as reliable as any other console now, the net Fanboys can't convince people who see the latest 360 in action in homes and shops etc otherwise, it is a top bit of kit (Everything the old Zephur 360 should of been)
Anticipation of Fable 2, Gears 2, Banjo Kazooie+original N64 banjo included bundle, and of course the BIG dashboard update in the next few weeks(more like xbox live V2 than just an update with it's huge amount of new features) are also selling it.
PS3 is losing more money for Sony than they made in the best 5 year sales of PS2 hardware. PS3 have had their price cuts but the sales remain static and that is not good, all they can do is hope bundles can compete with cuts and they usually DON'T..
Nintendo will have to drop their price One huge amount to counter the 360 and as they don't see the 360 imposing on it's side of the market yet why would they drop price ?.