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

[Spectrumglr]

dgm6780 said:
Just because we are talking price cuts, the price cut the PS3 desperately needs is to bring back the 20GB with wireless internet for $399 or even $350. That would blow the XBox out of the water.

 the problem is that probably by now a 20g HD costs to sony only 10$ less than a 80gb one....unless you have a huge warehouse full of 20gb HDs (like MS apparently has) you simply can't lower the price just using a 20gb HD instead of the 80 gigs.

I'm more willing to think that at present they can't afford a further price drop: as far as we know production costs are still high for Sony (and probably still exceed 499$)...and in addition you should take into account that in Europe they still haven't lowered the price: if 499$ was profitable i don't see why they shouldn't lower the price also in Europe... honestly i don't think that i'm too far from truth if i say that EU customers are payin' the US Price drop.