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Others can lower the price ,thats true .But Sony has the manufacturer of its consoles (not as MS and Nintendo who hire somebody to do it ) can transform directly the improvement in the production into cost reduction ....MS and Nintendo cant do that as easily they have a contract and have to respect it until they renegotiate it to include other components or lower the fee payed to the manufacturer . Besides the brand name serves for something .PS2 has been more expensive than Cube and Xbox for most of their lifetimes and still beat the crap out of those consoles .Dreamcast was also cheaper than PS2 .If the console has value ,and the PS3 has lots of value ,people will see it and once it is around 350 dollars/euros run for it ...no matter if the X360 is at 250 then or the Wii 175 . Plus ,not everybody doesnt know how to count .400 + 5 years paying 60 is still more expensive than 499-599 .Some not too clever people get obsessed with the entry price ,but others measure the total investment cost in some years .I know some people ,myself included ,that wont buy a X360 ever because it is a very online-oriented console and they dont want having another yearly bill in their bank counts (even if it is as low as 60 ) . I wont keep discusing this too much ,it is a waste of time .Playstation 3 is doing good enough and will reach the milestones of the X360 last year(one million sold,two million sold,5 million sold ,first game million seller ) far quicker than the X360 did ....maybe it will need a price drop sooner than expected if the pace isnt fast enough to catch up but for sure the console isnt going anywhere (as going to hell as you posted ) .If selling more than the competency in the same periods is doing horribly wrong then let be it .....but your wishful thinking will receive a smack in the face when come January Sony announces it has 6 or 7 million sold ...