I agree with you. And thats exactly why i think microsft had to fo a step further on the price drop. Price will always help. Economics aint an exact science like math. There's no such thing like "if you dont buy something, its because you dont want or doesnt have the money".
Theres a million of things that an average customer take into consideration, without noticing, before buying something. Specially something that cost $300. Price is just one of those things, yet, one of the most important.
example: an average joe, who likes videogames, and plan to "someday" buy a 360. He currently has all the money he needs, but he's not in a hurry. He might buy next month, or next semester, he doesnt care. Then on a given day, hes shopping at a wallmart and spot the 360 just bellow the 200,00 mark. All kinds of toughts goes to his mind and he takes an impulsive decision and get the system right away. Even if he regrets the next day. That's how things work. :lol
Have you ever considered why you choose one brand of soap/milk/etc? Probably because they paid the supermarket to put then on a more visible shelf.