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starcraft said:
The problem with this is that those prices will struggle to compete with a $399 PS3, even if the PS3 is dummed down. You cant have a blu-ray-less console at just 50 dollars cheaper even if it does come with good games and have access to a better library. it also has a smaller hard drive

I beg to differ. Seriously, if Sony drops the price of the P$3 to $399, it will be losing money like a hemophiliac losing blood. They would be in it just to say they beat the 360, but it would still need a huge surge to sustain momentum. And at what cost? Just look at it - the 40gb PS3, with just software emulation, will compete with a 360 with 2 games (That's like $100) and the even lower Arcade version at $279. The PS3 will still suffer a gaming defiency, and with no real games out this holiday season, the sales will surge temporarily and then start falling again.

My question is ... what compelling reasons NOW does the average gamer have to buy a PS3? Nothing comes to mind for me ...

And of course, M$ will just match their price cut - eventually - but with Halo 3 burning the charts, Sony's looking very, very desperate these days ...