Edit:
@Tyrannical: True, but it could also be that when they saw MS' cut had such an effect it was too late to ramp up production and fully gather in their turn the fruits of a cut. Anyway a $100 cut in April would make Sony lose more money than now on consoles sold in USA (and earning nothing instead of a few euros in EU) for some months, it will take more than 3-4 months to cut costs by $100.
@omgwtfbbq: I oversimplified, Moore's law is only one of the factors, price cuts are consequence of Moore's law, other evolution of IC's, economies of scale, production process refining, etc. The cost of other components than CPU's also falls, GPU's have an obsolescence and cost fall even faster, HDD' cost falls fast, RAM speculations times are luckily long over and its price drops too, the only big cost remaining was that of the BD drive, but it's falling too, maybe a little slower.
