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Reasons for price cut:

-slightly lower production costs
-more revenue with little extra costs, the video download section
-Games division achieving profitability

Reasons against

-Sony might want to include a headset w/ the more expensive SKU or the one coming up, which would increase the cost to put out that by about $20
-Sony corporate depending on the games division to be profitable, b/c sony corporate has done poorly with respect to profits this last quarter
-The 360's price cut hasn't really amounted to a whole lot of anything so Sony may feel that they can get by without a price cut if they add an extra like the headset, and bring HOME in as well as bring out some more games.