Not to give a history lesson, but Sony also did some feature cutting to get the new price
They still didn't turn a profit for another year. The Slim price cut got people to buy but it came at a cost, both to the hardware and their wallet.
Yeah, drop Kinect, that's the basic gist of this point.
But if we want to be real about it, MS was also able to drop the price of the 360 without dropping features as Sony did. There are ways to cut pricing without dropping major features.
And yes, before its even said, I know Kinect is not considered a major feature, but to MS it is.
The problem is taking away the Kinect is the most obvious cost-cutting measure. Unless MS find a method of creating Kinects for free or they are willing to take the hit of the cost of its production then how are they going to be able to match the PS4's price?
The reality is we'll have to wait and see. If more games have the Kinect integrated into play and the One starts to catch up to PS4 sales they mightn't even have to consider dropping the Kinect.
Don't be shocked if MS decided to eat some losses to match Sony's pricing.
Oh and don't expect a suddenly onslaught of motion controlled games. What you will likely see is more hybrid games that use some of its features and then a handful of motion controlled games. Heck, you will probably see more indie games that try to use kinect's motion controls than AAA titles.