I don't think PS3 value/price was wrong at launch - the demand for the spec was wrong.
Put simply if you wanted a high spec HD gaming console and a BR player and online play it was superb value.
If you wanted a high spec HD gaming console it was too expensive as you didn't care about the BR.
Sony had two choices - start firm on the value/price and see smaller sales to those who wanted BR at that time, or take a cost hit to get price closer to what those with no interest in BR at that time wanted.
This balance remains their price issue - although with time if BR adoption rises then the percieved value of the BR in PS3 will rise too.
MS were able to be firm on price for a while as it was pretty good for what 360 offered (although their add-ons like HDD have always been way overpriced IMHO). However recently PS3 growth and Wii going through the roof have forced MS hand (and the player with still the smallest market awareness IMO) to cut prices to remain viable. If MS did not cut prices with current trends they would be handing Sony 2nd place WW on a plate - so of course they are going to cut prices.
On the other hand despite having to jump for price early on recent sales and trends have probably put Sony in a better position to hold price than MS.
Try to be reasonable... its easier than you think...
