Instead of dropping the price, I think Sony will put the 160GB SKU in the market at the same price as the 80GB and discontinue the 80.
Also, I think they could now afford to put back PS2 BC into the systems by chip or software (or both) seeing as how the PS2 software and hardware sales seem to be waning.
Then they could cut the manufacturing of PS2 down to zero and discontinue it; after 9 years I don't think anyone would mind and it would save Sony manufacturing costs.
Making just one PS3 off the lines would be a lot cheaper than rolling out two seperate ones and might even offset some of the hurt they'd take initally due to the larger hard drive, but they won't be losing much more cash per console than they are already by doing this.
And they'd stay true to their word - no pricecut, just added value.
MS might start to worry a bit then.
Proud Sony Rear Admiral
