Sony is facing a multi-facted war that i don't think even they forecasted.
1. Online play is critical and people *ARE* willing to play a nominal price for a great centralized service
2. BD Players dropped in price exponentially faster than PS3 prices - cutting out the "may as well buy a ps3 if its the same price" mentality
3. Wii is bigger than both MS and Sony ever thought it would be
4. Consoles are about *SOFTWARE* and guess what - sony isn't a software company. They leveraged their software on pushing their BD software/hardware platforms and that isn't working out to their advantage.
I think Sony's best bet to save the PS3 is less about reducing the cost of the PS3 itself, but reducing the cost of its software. If BD's were 15 instead of 30 (in consumer retail channels) then that demand would push PS3 sales and if they chose to re-market their games at 49 isntead of 59 perhaps that would force microsoft to respond as well - pinch MS where it hurts on retail software profits.
The lowering of the price point would not only help the consumers, but probably expand the base across the board and put pressure on even nintendo to reduce prices because theire 49.99 games would seam like utter crap against what Sony and MS would publish.
299 is still expensive for a lot of people.. kind of amazed sony hasn't brought Evercrack over to the ps3 to leverage that as well







