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My bet for 2009 out of your choices is:

- Microsoft does nothing, Sony drops by $50. Unlikely it will be by $100.

Dropping the price to $350/$450 will still be huge though and increase sales to 360 levels. $100 price cut to $300/$400 would put PS3 sales well above 360 sales and even rival wii sales.

I beleive there is higher demand for PS3 than 360, its just the price stopping people from buying the PS3. Why spend $400 when you can spend $300 on the Premium Xbox which has most of the same games except some exclusives.