The only problem I have with the article is the assumption that the PS3 is automatically a better value (I can only imagine they mean due to inclusion of blu-ray and wi-fi).
I simply don't think the general public is concerned with wi-fi and blu-ray... IF they are in the market for a video game console. NOW for the group of people who are looking for both a video game console and a blu-ray player, yes it is a better value. But that is a subset of the market (and a small one) not the entire market. Assuming that everyone wants to upgrade to Blu-Ray is a bit too narrow minded for me.
Otherwise I honestly have no idea how a price cut would affect sales...I'd guess a big spike up front for those who were waiting to get one, with a gradual decrease to slightly below 360's sales (economy is bad just about everywhere).
