The answer is it wouldn't catch up at all. Doing so would cause Sony to go into a financial death dive. Which would quickly be reported in the media, and consumer confidence would plummet. Along with retailer confidence in line with the fear that they would be stuck with products no longer honored by a defunct company.
Basically it would be the herald of a company doing its utmost to kill itself. Which in the real world would have investors filing suit against management, and it would basically result in a cluster fuck which would see the products own demise, and the company promptly dismantled.
The question is irrelevant, because it is contradictory. How can the PS3 succeed by being that price if it destroys the product in the process. You cannot win a war by having your soldiers shooting themselves in the head.
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