[Dire]

I really don't see this happening. It makes about zero sense with the elites still selling out. And with the new [cheaper to manufacture] processor right around the corner, it makes no sense for them to try to boost sales forcing more production/losses. Not to mention that within a few months there's a few mega games coming, the least of which not being GTA / Halo 3. Those are going to be huge console selling games and lowering prices right now just means they take larger losses - for what's probably going to be a minimal number of users buying a 360 that wouldn't have otherwise.

Just my couple of cents.