This isn’t the official word by any means, but actually an analyst pontificating. According to EEDAR analyst Jesse Divnich, Microsoft will cut the price of the Xbox 360 and/or introduce new hardware. He would then expect Sony to follow suit with the PS3, which is outpacing Xbox 360 in sales.
A price cut? Just get us damn Blu-ray already so I can return my 360 to Costco for a complete refund.
More info here