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I can't see a $299 PS3 in the cards within a year. Not without a major hardware revision, or a decision to increase losses on each unit sold.

Some consumers seem to be under the assumption that it will happen this holiday season, despite the new SKUs, which are supposed to offer the perception of more value at the same price. 80GB for the price of 40GB, 160GB -limited- bundle with a bunch of extras for the same price as the former 80GB bundle.

I think that's the best Sony can offer for now. I'd be surprised to see even a smaller $50 price reduction this year, and that would only be if the 360 price cuts resulted in overwhelmingly positive sales.