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Impulsivity said:
What happens if cutting prices to the bone doesn't drive huge sales? Anyone remember the Dreamcast cutting prices to the bone and still not picking up any steam? I think history might very well repeat itself here. Maybe Americans are more willing to pay more for quality then some would think these days.

 

By that logic, the PS3 should have died last year when Sony made their $100 - $200 price cut less than a year after launching(I know that's not what it really was, but if you don't strongly follow gaming news, that's what it looked like).

Also by the logic of your last sentence, the PS3 should've been outselling the 360 last year when RRoD news was in full swing.