Price cutting is critical to any race. The Xbox dropped its price $100 in May 2002, and tripled its monthly sales, and reached a point that it sold very well in the US the rest of it's career - price drops help get a good system to a willing (and paying) marketplace. However, I don't really see Sony cutting the PS3 $100 really helping it out alot. It'll help, but not the boost it needs. However, I don't think Sony wants to, or will, cut the price for awhile. The PS3 needs a $150-$200 pricecut across the board - which won't happen for atleast another 2 years. Once it's at the current 360 price level(s), we should see the system do near-360 numbers in the US. As for Japan, I question if the price drop would REALLY help alot. What matters to Sony is 2-3 years from now getting it to a mass market price, and getting all of those late-adopters to purchase a PS3 rather than a 360, or an aging Wii system. Having 5-10AAA titles don't matter. It didn't really help the N64 - it had TONS of AAA titles. However, it lacked the cheap(er) near-shovelware titles that the PS1 had. A library of 100+ decent games is better than 20 good games in the eyes of consumers. Im not saying its right, but no system has survived without a strong base of developer support, either from 1st or 3rd parties.
Back from the dead, I'm afraid.
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