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NSS7 said:
PS3 price cut will has more effect than X360. X360 price is already cheap. There are lot of gamer wants PS3 but they just can afford it. PS3 future line up looks better than X360. Plus PS3 is more popular than X360 in Japan and Europe. Most casual gamer might choose PS3 over X360 (1st was Wii) as well as PS2 owner. I expect PS3 to double X360 sales until next year if Sony cut the price by $100 if Microsoft didnt counter with another price cut.

I agree. A lot of people want a PS3, but can't afford the $399 entry price. Cutting the price to $299 will cause it to overcome (what I believe is) its biggest obstacle.