In an interview with Bloomberg, Peter Moore and others discuss the Xbox 360 demographic, how they want to target moms and their kids, and hint at a possible 360 price cut. "If we don't make that move, make it early and expand our demographic, we will wind up in the same place as with Xbox 1" Moore says, and what better way to move more consoles than with a price cut. Director of Xbox product management David Hufford reinforces this thinking by stating that "we (Microsoft) are well aware that the sweet spot of the market is really 199 bucks" and that "when mom walks into the store and sees she can get a console with a game for $250, she sees it as a $300 value". It really sounds like Microsoft gets it.
But will we be seeing a Xbox 360 price drop this year or just a game bundle? We can't be sure, but we know Microsoft is cut throat about gaining ground in the console wars this generation and a price drop would help significantly. They just have to make sure their pocketbooks can handle more losses, but we're sure Bill would be willing to co-sign.