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dejelek said:
at some point Sony will reduce PS3 price, but after that MS will reduce arcade version even further

remember, Jasper is on the way (more cheaper again), and valhalla targetted for 2009, xbox 360 slim model, which even cheaper to produce

 

I think that  if sony keeps their current "pretty much 1 sku"-model then dropping the price would benefit them most, EVEN with a lowered xbox price.  The slim model could hurt them again, but they have a slim model coming too sometime, so that's not someting they will worry about now.

If they are truly gunning for profit at this time, I don't think they'll drop price unless they can keep profitability.  (which probably means they'll only drop the price if the loss they'd get then is DEFINITELY offset by software sales.)