With the recent rumors of a pending PS3 price cut, is Microsoft thinking of taking the plunge also? 

According to Joystiq, on June 15th, 2007, the Xbox 360 Premium will have been $399 for 600 days.  This is even longer than the time it took the PlayStation 2 to initially reduce its launch price.

Even with the emergence of the Nintendo Wii, Sony is still the primary rival and target for Microsoft's Xbox division.  History shows that Microsoft and Sony always try to out-trump the other come E3, the industry's largest convention. 

During E3 2003, Sony apparently became aware of a pending Xbox price cut and beat Microsoft to the punch by announcing a Playstation 2 price cut to $179 (from $199) during the week prior to E3.  As planned, Microsoft followed through with their announcement at E3 Wednesday that year.

So, do you think Microsoft will return the favor this year by trumping Sony's expected price cut at E3 this Wednesday?

[Update - looks like our question was answered this morning (Monday, July 9th) as Sony has officially announced a price cut.]