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If they cut the price to $299 they would be a serious threat to Nintendo. But I am not expecting a price cut anytime soon. They would have to lower the production cost to a level where PS3 game profits>PS3 hardware losses after the price cut. That's not going to happen before a 45nm Cell and a 45nm RSX comes, which isn't going to happen this year. They would also have big supply problems, which would make them ridiculed, just like with the MGS4 bundles. And the 399 euro LBP bundle will still sell a hell lot, even at such a price.