At what point do price drops become desperation and a joke?

[Spectrumglr]

i think that PS3 100$ price drop in Summer and less than 1 year after its release, is somewhat a desprate move (especially if it's true that PS3 production costs still exceed 600$) ...i honestly expected a similar price drop in October/November but apparently Sony couldn't wait (and if sales don't take off another price drop is more than likely: 2 price drops in 12 months isn't something that i usually link to a successful product, do you?)