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A PS3 price cut is dependant on how long lasting the Xbox 360 sales increase is.

A few weeks of blip only and Sony will hang fire and maybe drop 30 - 50 GBP for the Xmas market to wrestle back some of the momentum from MS.

However I see a potential for a more longer lasting sales increase this time around. The Xbox is now at a price point where it can almost be a casual buy.

129 GBP for the Arcade unit is stunning value in the UK. If this means that the Xbox can hold onto sales and keep the momentum then I believe Sony will have its hand forced and a price drop will be inevitable.

Time will tell