The PS3 will only seriously be viable for as long as the 360 is. Once Microsoft and Nintendo move on, so too will the developers. The whole 10 year PS3 thing was based on the PS3 having a large enough userbase to warrant developer effort to write for it exclusively, as they have done with the PS2. That does not exist any longer, and most developers write their games for both PS3 and 360 so that there is a large enough market for their games.
A PS3 price drop is only part of the problem Sony has to overcome. A much bigger one is shelf space. When I go to stores, I see large shelf sections for the 360 and the Wii, but not for the PS3. This makes a very large impression on buyers who don't want to be caught missing out on the action. It's becoming very obvious to average consumers that Sony is struggling this generation, and the customer confidence they were counting on for selling the PS3 is now largely gone. People are figuring out that the 360 has most of the games PS3 does, the 360 has more games, and the 360 runs the games that are available for the PS3 just as well as the PS3 does. So unless people still fundamentally believe the PS3 is going to catch up to the 360, when that price comes down, there won't necessarily be a massive swing to the PS3's favor. That faith in Sony's ability to come back is fading quickly.
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