it doesn't seem logical that MS would need to make any further price cuts. Although the retailers seem to keep trying to (some kinda discounting offers going on from MS?? like with the supermarkets doing the £99 360's. If they do anything price related, it will over time no doubt more likely be they shift products around at the same prices. The Premium to the base model price, Elite to Premium's price, and the whatever they dream up next into the Elite price area.
But as it stands, at £99 for a base console, can't really see them needing to lower the price further. Thats pretty much in the end of life console price band once it gets under £100.