Economic news about japan is dire to say the least. The Japanese economy is in its worst decline since WWII. E.g. Toyota alone is normally responsible for 10% of Japan's corporate tax revenue. Toyota has posted a loss for the first time ever, which means the Japan govt takes a 10% revenue hit, just from that one company.
Given that I expect the Japanese games market to be depressed for quite some time. With major software releases generating HW boosts of a lower peak and shorter duration than would normally be expected.
Wii can afford a price drop and remain profitable, which will help with sales to a certain extent. PS3 can barely afford a price drop, and if it doesn't boost sales much because of the general economic conditions of the time then what's the point? Better to make a meagre profit on ~10K of sales than make a slight loss on ~12K of sales. Ride out the storm then cut the price when people get back into a buying mood.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
"When the power of love overcomes the love of power, the world will know peace."
Jimi Hendrix
