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To be honest I alway heard the blu-ray disc added 150 to 200 bucks to the PS3's cost. But Sony does need to drop the price of the PS3 by about 200 bucks for it to make a comeback.

Something I saw talked about quite a bit several months ago was that neither HD-DVD nor Blu-Ray were meeting the (sales) expectations of the movie studios ... it is possible that (even with the sales increase caused by the PS3) sales are still not meeting expectations.
Is that in the US? Right now the only reason to buy HD-DVD or Blu-Ray is if you have a HDTV and most americans don't have one yet, so sales will not be too great right now.