Dodece said:
@UncleScrooge

I think the general consensus is that console loyalist typically lack sufficient detachment. Being that they routinely confuse what they want with what is logical. As with many things it isn't just what you ask, but where you go to ask. These forums are hardly a good barometer for such things. While some make compelling, and rational arguments the bulk of speculation will be poorly thought out, and reflect only naked desire.

True. But my prediction isn't based off these forums. I just used that to get a starting point for this thread. I didn't want people to come in and say "they won't cut the price"

In this case there isn't much in the way of a logical argument for Sony to reduce the price let alone to the extent you are predicting. Trading healthy profits for a prohibitively expensive price war isn't much of a trade. When what is being fought over is tantamount to scraps. Sony would gain nothing, and lose a great deal. This is what is really damning. The dynamic would not change. The competition would simply match of exceed. Since they can go further they will win by default.

This is not true at all. A price cut (whether its a 50 or 100$ cut) sounds quite logical. Sony always operates under the lowest possible profit margins.

"The dynamic would not change". That might be true. It's not about dynamic, though. It's about maintaining current sales levels. Sony projection for this fiscal year is 15 million units. That's flat or slightly up from last fiscal year. Current PS3 sales are a far cry from early 2010 sales (due to the Slim model and the price cut). I should've included this in my post but basically if Sony wants to meet its projections it needs to drop the price.

They'd lose sales and that's what matters.

You want a prediction. I predict early summer next year for all of the players. That is when the next generation is going to start pinching off the current price points, and all of the players will need to start hitting the bargain bins.