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Millennium said:
"The industry" does not need a PS3 price drop; the PS3 needs a PS3 price drop.

Unfortunately, this is one of those times when what is good for a console is not necessarily good for its maker. Depending on who you ask, Sony is either still losing money on every PS3 it sells or just barely breaking even. Having already squandered the earnings of the PS1 and PS2 on this, they are in no position to afford a price drop right now, and this is why it will not happen. If things were different -if Sony could actually afford to cut the price- it would have happened well before now.

they are still 2 billion in  profits from the ps2... the ps3 will likely eat 1 more of that.

they will price cut when they can break even with the price cut and when they do it will stay 299$ for a long while.