Pricedrop: willhelp, but it will still be more expensive than their direct competitor the 360. Since 90% of the library is the same between those two price is the main differentiator, which will liekly always be benificial to Microsoft.
Games: GT5 is huge and will sell hardware. But how much? I would say if sells 2 million consoles is an insane achievement, the reality will likely be much less. However even a console boost of 2 million won't get it close to the 360.
BluRay: Standalone BluRay players are much cheaper now. Plus the economic crisis will likely decrease interest in the medium, due to higher prices of the films.
Home: only core gamers really care about Home, and most core gamers already have a current gen console. 95 million current gen consoles have been sold already, so the potential customer base will get increasingly casual, which doesn't benefit Sony.
Sony just needs to get the PS3 profitable, so no pricecuts until they match the manufacturing costs and great first party software. PSP is doing good and looks like its life will be increased dramatically, due to very strong software support. The last thing Sony needs to do is throw away money.
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