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ultraslick said:
I agree. Sony will not cut the price this year, for the above stated reasons. Now is a good time to buy a PS3, because gamers know that there is no price cut around the corner.

This is really the first time in a while that potential PS3 buyers can be confident that the system won't drop in price right after they buy it.

And by delaying as long as they can before cutting the price, it will

-increase the effect of the next price cut, (whenever it may be)
-keep the PS3 nearing towards a break even point (most important)
-show the perceived value (as real as it is) between itself and the 360. Clearly differentiating it from the "lower end" HD console.

But with that being said, if Sony went nuts and pulled "a microsoft" by cutting the price- especially all the way down to $299 before this Christmas - it would be absolute pandemonium.

Sony would not be able to keep up with demand, and would be sold out through mid-February.

But No Chance!

 

Microsoft made a healthy decision to drop price. They are in their 3rd year. They can now focus on the lower income potential crowd. Sony made similar choices during their third year of the PS2.