Per the story from TechRadar, Europe will be getting a €50 price cut across the board on all Xbox 360 models just in time for Grand Theft Auto.  Some retailers have already started selling the Pro for € 250 (looking at you Amazon France).  This price cut will shift the Xbox 360 Pro to spitting distance of the Wii at € 234 and will push the Arcade model below at €197.  This move will also separate the Xbox 360 from the PS3 which is currently retailing at €370 in Europe. 

Will this price cut be coming to the US?  Will it be a $50 price cut across the board?  I tend to think Microsoft needs a larger price cut in the US.  Pitting the 40GB PS3  vs the Elite at $399 will probably not be enough of a cut.  Microsoft has to take into consideration the BluRay capabilities of the PS3 and drop the Elite closer to the current price of the Pro($349).  If Microsoft can do a $70 drop across all models (Elite $379, Pro $279, Arcade $199) this will be a huge boon for consumers and will let a whole new market of gamers into the true next generation of gaming.

Sources:
joystiq - rumor-xbox-360-to-get-50-euro-price-cut-march-14
techradar - xbox-360-price-cut-14-march