IMO Sony shouldn't. What Sony should do is to improve the PS3 experience through games and services (which is something they're doing right now). They'll just lose a lot of money with a price cut. Right now, the Wii is on track to being the dominant console, so there's really no point of price cut (what, do all that for second place?).
I think it's better that the PS3 be well regarded in its lifetime, like the Dreamcast and Gamecube. While it had a horrible launch, the PS3 has been improving its lineup, and hopefully its service. In the case of the Gamecube, all the goodwill on that machine is transferred to the succeeding machine, and look at the Wii now (I remember there were rumors about Nintendo exiting the console business during the GC, but Nintendo ignored it and just did what they do best on the GC).
Also, if there were a price cut, DMJ will NEVER get a PS3 in his lifetime... Please have some mercy.
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