It's generally difficult to raise a price once it's been announced, but would it really be taken badly if Microsoft simply said, "We can match that." They put up a commercial with the old price, strike it through, and announce they're matching Sony.
How is that a bad move?
(edit: assuming "match" means reduce to a Sony attempt to undercut.)
How is that a bad move?
(edit: assuming "match" means reduce to a Sony attempt to undercut.)