The PS3 price needs to fall soon!

[catofellow]

As long as PS3 w/w sales are competitive with 360, there will be no PS3 price cut.  Remember, PS3 is still ahead of where the 360 was at this point in its lifetime.  As I will discuss later it doesn't appear Microsoft has any major price cut in line either.  The only hope you have for a PS3 price cut is for the introduction of the 20 gb PS3 across Europe for around £350. 

I know there is debate about whether Microsoft just increased the price of the 360 with the "elite" model, but unless they increase overall shipments, the average price of the 360 has indeed just gone up.  Does anybody really believe that the elite unit will only be purchased by people who otherwise wouldn't of bought a 360?  To the hardcore gamer, the difference in price between the "good" 360 and the "good" PS3 has gone down.  I was very bullish that Microsoft would introduce a significant price cut this year and thus Sony and Nintendo, however I find it hard to believe that Microsoft will sell the Elite at 479 (probably around £325) only to cut the price a month or two later.  It would also be weird for MS to cut the premium and core price but not the elite.  Remember the 20 gb hdd sells for $100 and the 120 gb hdd sells for $179.  The price differential between premium and elite SKU cannot be much more (more because of HDMI port and cable) than $79.  Similarly, the price difference between elite and core cannot be much more than $179.  Then there is the possibility of the outright elimination of one of the SKU's.  Very confusing, but to make things simpler, the first move on pricing will have to be made by Microsoft.