I don't see it in Sony's short term plan to reduce the price, especially with the restructuring going on. The bigger issue at hand here is when the Wii passes 50% marketshare of current gen home consoles. This is a harder thing for a developer and/or publisher to ignore.
Thus far, development for Sony systems has not been a failure. Profits are being made on several of the quality PS3 games. The difference here is the economic status of the developers and how much they can afford to spend in development. HD development isn't cheap, and to make a solid HD game, it quickly escalates to 30 mil +. The economy isn't helping anyone out in this matter either.







