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After the big price drops of the 360 Sony should do something in their pricing.

299 would be the sweet spot ,but somehow I doubt they can manage that.A 50$ price cut would be a good way to move hardware and keep eating at the 360 marketshare and reducing the gap (in weekly sales)with the Wii.

I think they will do something ,unless the 360 sales dont grow at all in the long term after the first 1-2 weeks after the price cut.

If they drop the price I would do it at the same time of the Little Big Planet/Home release in late october.