1)the most likely thing they would do
they would price cut after sony, so it's win , for consumers.
2) i doubt they will make a slim, they don't have the tech or the engineering muscle power sony, and most japanese companies have to do such thing, look what happen to RROD ,E74 fiasco, scratching disc drives, while i think microsoft may try to do it this time, not as in now, would release way later the ps3 slim unless they do another 2006 360 and pass all the security, quality testing.
3) u won't have to buy a ps3, unless he wants to play first party sony games, which are many now and stil growing, the only think that will change it's likely JRPG support will shift to the ps3 and wii due larger userbase in japan especially after FF13.
third party will remain multiplatform especially the western ones.
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