Isnt it already 129.99 $ 
Depends on how Sony's likely-to-happen PS3 price cut is going to affect sales. And also how much they (MS) are making profit now and how much they would profit/lose if the cut the price.
Another price cut just because of the PS3? Does anyone really think the 360 isn't selling more because of its price?
They've had a $200 unit since october last year, that's the cheapest current-gen console in the market. The PS2 is $130 and isn't selling more than the 360 right? When the PS2 get its price down to $100 it will get a nice sales boost but nothing extraordinary or long-lasting. However the new price might help it stay around the same level of sales where it's been at $130 (meaning they will drop a little slower after the cut).
The 360 is on its fourth year, it's on sale for as low as $200. Its market saturation level is higher than the PS3s. Another price cut would definitely give another nice boost to it but it wouldn't do enough in the long-term to justify the kind of loss MS would have to take just to remain around the same level of sales.
I call for no X360 price-drop this year, too risky if even possible and it could backfire for 2010.
Based on the new elite bundle news, it seems ike M$ is going to try to force Sony's hand...a free halo 3 and fable 2 is a $100 price cut for M$, and they get to keep pushing out first party games. We will be able to effectively measure the effects of this, since the delta between sales on those games now and post launch will lock in how many elites are moving.
Maybe if sony drop it microsoft will see this as a treat and will drop it.
I think MS may already damaging the XBOX 360's perceived value although this would be damaging the 360 is a normal competetive enviroment but in our current economic situation it seems it is a winning stratergy.
The only problem I imagine MS having with the heavy price reductions is disatisfaction amongst those who already own 360's ( no one likes the value of what they own constantly depreciating ) and the XBOX brand name ( which will carry future XBOX iterations).
I'd say the odds are favourable but no by too mcuh.
It would be a mistake for Microsoft to pricecut this year, I reckon.
They need to leave it, build up anticipation, maximise whatever profits they're on course to make in 2009 and then in 2010 announce a pricecut one month before Gears 3 is launched.
In 2010, maybe Arcade down to $169 with 5 XBLA titles bundled, Pro down to $249 with Forza 3, and Elite down to $329 with Halo 3 & Fable 2. That would be aggressive!
What are the chances that Megadude will stop asking basically the same questions and stop stealth trolling the Microsoft forum?
0%
OT: If Sony cuts and the sales change directions dramatically so that it becomes clear MS's lead will evaporate quickly, MS will cut. Otherwise if the PS3 only sees a marginal boost (what I expect) and the holiday is favorable of MS again because it is still cheapest, I bet they will make a great profit on 2009 and cut in 2010 aggressively before Gears of War 3 around September. I also expect that while Sony may get the better game lineup award for 2009, Microsoft has many things in the fold for 2010 to take the software lineup champion again.
Theres going to be a Elite bundle with supposedly Gears of War 2 and Fable 2 by summer/fall in the US according to a couple people on CAG.
I think next year the Arcade will drop to $150, and it has a chance to drop to $180 this year and the pro to $270/$280 if sales drop real low.
It's just that simple.