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Unfortunately for Sony, it will be a while before they can comfortably drop the PS3 price below $250.

The PS3 sales would have to really fall for them to even consider it. If demand from now on just slowly drops, then I don't see Sony dropping the price from $400 until late 2009, and even then it would probably only be $50.... if they wait into 2010 then perhaps they will drop $100.

But for them to then have a further price drop of $50 again could be another year, and I think by 2011 Nintendo will have dropped the price anyway (they won't have stock issues then so it is not a stupid decision as it is now)