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This will not please the people at Sony Towers

Still widely reported to be losing money on every PS3 sold and their "main" competitor has just massively undercut them.

I personally dont think Sony will cut the price of the PS3 for a few weeks. They will wait to see what the cheaper 360 moves and then they will make their move.

I predict UK PS3 40GB model to drop 50 GBP to 249 GBP. Its still comparitively expensive but Sony can play the Blu Ray card.

Personally I think its irrelevant. Microsoft have cash reserves most companies could only dream of they will just keep cutting the price until they bury Sony.