Ya know, the Dreamcast dropped its price real quick too....That didn't mean it sold well during it's Christmas period.
IMO, the 40gb PS3 is a good move @ $400, but it's only putting a bandaid on the venom going through the PS3 (no uber-exclusives, weak 1st party games).
Sony has to keep the PS3 @ $400 for a long time. MS has had a huge advantage with their drops: keeping the price so high for so long built a strong precieved value in the hardware. When a price drop happened, sales skyrocketed. With Sony dropping the price twice so quick, I wonder if consumers might get the impression a drop to $300-350 might be looming, making them think "oh, Im just going to wait awhile longer".
Sony needs to make it's stand at $400. Save their cash, and dev more games, and focus on cheaper games that have a lower chance of crashing (no Lair-budget games), and try to take back that pitiful 4.5%-ish number of J-games coming to PS3.
Back from the dead, I'm afraid.
