If no PS3 price cut, then Wii60 will steam roll over PS3 in holiday 2009

[Millennium]

I agree, but this is the catch-22 that Sony's managed to get themselves into. If they cut the price of the PS3 it will kill them, but if they don't cut the price of the PS3 it will kill them.

This is the problem with overengineering a game console. If you can't offer it at a price people are willing to pay for a game console, they will not buy it. Sony's managed to skate by a truly insane amount of risk twice now, by offering consoles initially at a price that wasn't profitable. But risk is risk, and luck runs out if you push it for long enough.