Having just been introduced in the UK, the PS3 is currently sitting at around £399, compare to the Wii (£180) and the 360 (£200, £270 Premium). It certainly is much more expensive.
There is no doubt that this price will harm the overall sales of the unit and I think everyone and their dogs know that they are making a loss with the system at the moment, but with reducing costs for Blu-Ray players and mass production of chips, we really need to see a price reduction soon.
Harking back to the days of when the PS2 was released, it was introduced at £299 which I recall was regarded as pricey at the time. It wasn't long before the unit was reduced. Within 10 months a whole £100 had been knocked off the RRP and it sat a bit prettier at £199 alongside the more expensive Xbox which was introduced in 2002 at £299. We seem to be seeing the reverse of what happened then with the 360 and PS3.
So we need to see the same happening with the PS3 as what happened with the PS2. We need to see the price fall by at least £100 this year, ideally in time for Christmas with a further reduction at some point next year bringing it more in line with the competition with a UK price of around £200 being achieved in no more than 18 months time.
What I think needs to happen:
Current price: £399
November 2007: £299
Sept-November 2008: £199
Prediction (June 12th 2017)
Permanent pricedrop for both PS4 Slim and PS4 Pro in October.
PS4 Slim $249 (October 2017)
PS4 Pro $349 (October 2017)