Microsoft has tried hard to launch Xbox 360 before Play Station 3, but once the prices were announced, it has discovered that it ran out of ammo.

Since the console will be available starting with November 22, Microsoft announced every single detail, ranging from configuration to accessories. It seems that the price didn't convince many, and now Xbox 360 is in a pretty tight spot.

Play Station 3 is due for launch in next spring, the consoles' hardware specs are much better than Xbox 360's and Sony might price it even lower than Xbox.
In conclusion, Xbox 360's officials have started to say that they are thinking (or they'd like) to decrease the console's price year by year.

Since the rumors have had the tendency to become reality, it's likely that the information will be confirmed. The bad part is that nobody will take the stores by storm on November 22, everybody preferring to wait for the price cuts.