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The truth is ... if Microsoft feels that they are losing ground to Sony ... they cut the price. I mean ... seriously if MSFT withdrew 50% of their cash from the bank ... it would be equivalent to a run on the bank.

Sony is barely floating on profits here ... they dont have a windows or Office to keep filling up the bank. Therefore cutting the PS3 price is difficult. They were able to cut it earlier when their TV's and cameras still sold and when Spiderman movie was still being released. Different story now.

DFC does not take into account each company's overall potential to move the market by their cash hoard. In addition, instead of cutting prices MSFT is bundling games ... which is much smarter move.