He is right, a price cut would annoy a lot of people at this early stage ...
If I remember correctly, a couple of months after the XBox was launched in Europe Microsoft drastically reduced the price and ended up giving every existing XBox owner a couple of games (in order to reduce their annoyance).
This doesn't make it a good excuse. The people who bought your system are probably not going to smash it and scream into the heavins "WHY!!" as they vow never to buy another Sony system; they are going to continue using their PS3 and buying PS3 games which means that you can make it up to them. For a couple of dollars worth of plastic and shipping costs you can give away copies of games that have sold most of what they will ever sell, or for cents worth of bandwith you could allow them to download games in a similar position, and yet most of these gamers would be placated by this.
I personally think bundling is a bad strategy because even if they put the PS3, 4 controllers, a Blu-Ray remote, 3 games and 10 Blu-Ray movies ("a $1200 value") for 6 easy payments of $99.99 there are only so many people who are willing to spend $600 on a PS3 regardless on what it comes with ...
