Here's a more informative article at NYtimes on this story, and some of the expected moves sony is planning on making:
http://www.nytimes.com/2008/12/10/technology/companies/10sony.html?_r=1
I think alot depends on this holidays season, and how sony brand sells. If they take a beating, with consumers looking for price over brand identification, we could see deeper cuts by the next reporting period.