Parsing the blogger's words a little more carefully, he states, "currently no plans" this fall. That's a sneaky way of saying, tomorrow, a week from now, a month from now, we may have plans. It's also a sneaky way of saying that summer or winter may see a price drop. In other words, there is a lot of open-endness to his statement.
Of course, MS doesn't need to drop the price to sell units this holiday season. The PS3 and Wii are sure to be in short supply and the price of the PS3 is prohibitive. MS will have tons of consoles ready to be sold and a great line up of games.
My guess will be some sort of bundle package which may add value to the console. This may include a game(s) or an extra controller. In that sense, it'd be a "cost reduction".
Only time will tell.