They had to cut the price, because their console is not worth what they were charging in the open market. By that I mean they were charging well over 300 dollars and on ebay 360s have been selling for under 200 dollars for a long time (the high end for a premium is 250 when someone gets REALLY lucky and its a 60GB one). When your console is selling for over a hundred dollars less then retail on ebay then clearly there isn't a whole lot of demand at the price they're charging (as shown by the sales which barely stay ahead of the PS2 worldwide even after the 299 20GB price cut.)
The Wii still sells for over retail since its hard to find (I sold my used one for 270, new ones still go for around 300 just like after launch) so obviously its price is fine. Though I would like a PS3 price cut to get more people on board they still sell for retail or slightly more (especially MGS4 packs) so clearly the 400 dollar price is one people are willing to pay still. I hope they knock it down semi soon though regardless but of course I understand that Sony unlike MS is in this for a profit not just some kind of living room domination ploy. If only Sony had buckets of money from inferior OS and office monopoly sales to burn 7 billion in a few years.
PSN ID: ChosenOne feel free to add me
