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NJ5 said:
If true, this goes against my predictions but it will be amusing to see Sony's financial contortions to deal with the consequences of this price cut.

Price cut consequences can be temper by software. Easily. Arcade definitely cost more than $199 to manufacture. Despite this I don't expect to see Microsoft in red.

Personally I believe Sony has  plenty of time for a price cut. Sales are good. Sony sold more in two years than Microsoft in same period. I think they will also outsell Microsoft in third year.

This gen one system is not enough for most developers. No1 is going to ignore 20 million PS3.