Sounds like the Europe fiasco we're they (dealers) lowered the prices on the X360 and MS keeps like its coming from them...Yeah...right!
Why is it a fiasco in this case?
It was pretty well established at $400 the 360 was a lot for a console, especially historically. Once you saturate the hardcore gamers, who will buy it without many notable software, you need to drive sales through value (price, bundles, etc), killer apps, general software library/appeal to a wide demographic, and the "IT" factor (i.e. cultural phenom).
Bundles and lowering prices is typical. MS has already stated they don't plan to break even until 2008 (kind of the byproduct of little continual Xbox "issues" and no sales as the platform was kind of unplugged and the typical expenses of the launch of a new platform).
I guess I see it as the platform was already expensive, they have made some cost reduction moves already but have yet to hit on the big one (Q1 2007 move to 65nm which should lead to nearly half as large chips and better yields for Xenon and Xenos), so they are in position to make some minor price cuts and begin bundling.
I guess I have seen so many bundles through the years (every gen, including the NES, SNES/Genesis, N64/PS1/SS, PS2/Xbox/GCN) that it is old hat. It is a way to increase value without necessarily incurring the same cost. Adding $180 of software isn't costing MS $100, let alone $180. So which is better for MS: a $100 price cut or a $30-$50 bundle (if that)?
Of course in the long run price will be more relevant than value for many consumers. Some may argue that is now--ultimately 2006 sales will tell the story. If MS can sell their 10M then they are right, if they hit 8M they were wrong. But overall I see this as "business as usual" in regards to market placement and pricing.