Sony has a lot of problems that need to be fixed. One problem is the Price of PS3, and another problem is lack of games that can sell hardware. These problems have to be fixed!
Even if they will lose money on a price cut, they need it desperately to regain sale momentum and also maintain it. A price cut can in the long run be turned into a profit by increased sales of software.
That leads to Sonys second problem. Without any must have titles, and increasing lack of exclusive software, Sony will be in serious trouble. Lately we've seen many exclusive games turn to Xbox 360 instead, and that's a serious blow to Sony.
The days when Sony could do virtually anything and still beat their competitors, are gone. Face it. They have a huge mountain to climb, and I seriously doubt they can make it. Christmas 2008 might actually be the period when PS3 lost its chances to catch up on Xbox 360.
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