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I wouldn't expect price cuts too often (more than $100 in a 12 month period) because it would have the look of desperation and would build the expectation of further price cuts. Basically, if the PS3 gets a second price cut within its first year there will be lots of discussions on how the PS3 has sold poorly and Sony is desperate to move units and at the same time people who are interested in the system will wait with the expectation that it will drop another $100 within 6 months.