Market analysts claim to have inside knowledge that Microsoft plans to cut the price on their XBOX 360.
It is believed to happen in Europe later this month with their Arcade model getting a $60 (calculated from British Pound) price cut. This should put it next to the Wii in terms of price.
If it happens it can be speculated that the Playstation 3 might have to follow to keep up the the two competitors.
We will have to wait and see if the rumor holds true and if it will effect prices in the US.
Source: Teamxbox.com