Ive come to the conclusion that Nintendo doesn't give a shyt about the rest of the gaming world. They just do their own thing, even if they are years behind with technology.
And I honestly think that Sony and MS both knew each other's prices, but MS thought that the included Kinect would balance out the price difference. Seriously, as big as Sony and MS are, I'm sure there are employees at both places that know ppl over at the competition, and they talk prices and everything else. Unfortunately the average person will always take the cost of the product into consideration first, no matter what the quality.
Successful business isn't always about the highest/lowest price of the main product, though. The big money comes in from up-sells, accessories, monthly subscriptions, etc, so I'm sure MS ain't sweating their current sales like the Coli does