Start working on a new console.
I'm serious. Sony seems to have already cut as much as it can out of the PS3, hardware-wise. Unless they can somehow cut the harddrive or replace it with something a lot cheaper, they're stuck.
I'd say hold steady with PS3, don't bother with a price cut until absolutely necessary and try to reach profitability. Pricing action at this point is only going to ignite an equal and opposite reaction from Microsoft, and Microsoft can afford to lose a lot more money than Sony can.
Meanwhile, get to work on PS4. What should the PS4 look like? I'm not going to say it should be a complete copy of Wii, but motion controls are a must, and the price needs to be $300 or less (there can be a premium $400 model). Keep blu-ray if possible, let the cell die.
It should probably also have something else...something disruptive. But I can't say what that would be because disruption is hard work! Too hard to dream up in a forum posting.
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