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Profit=/=Install Base

Sony are not yet in a position to fight with the Wii or 360 so they are doing what is right business wise which is to make sure they don't lose much money on the consoles. Once the parts for the console decreases price will decrease and then Sony will start worrying about Wii and 360. People forget so quickly that the Sony gaming division has 3 consoles and well they have brand name, it will just keep selling.

Come on be honest, once PS3's price decreases by $100 does anyone think it will not mop the floor with 360? Of course the price can go down for 360 but consumers are not retards, they will know what the systems are capable of.