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RVDondaPC said:
If someone has a $300-$500 budget on video games for the year because of hard economic times what benefit would it do to drop the price of the PS3? So they can lose money on the sale of a console then get almost none of it back with the sale of 2-4 games?

With that same budget Sony could sell them a PS2 and 10-15 games and make a bunch of money. There may be no Licensing fee, but there is a good chance a bunch of those games sold on the PS2 will be Sony published games bringing in revenue.

There is no point for Sony to try to attract low budget consumers with the PS3 right now. It makes no sense to drop the price of a PS3.

What about the low budget customers that pick up a 360 in ever increasing numbers?

It surely has to be a high risk strategy looking at that scenario as they would be the customers that are lost forever this gen.