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TC, I think Sony knows what you're saying but it's a bit too late for that now. Sony wanted to hit two flies at ones, sell their Blu-Ray medium and conquer the market with their advanced console. Maybe in 10 years we can say they made a good move as Blu-Ray is still the standard and the PS4 is an alltime favorite but right now the console market is lost to them. All they can do is stay somewhat competitive by doing what they are doing, make Microsoft look bad and stay proud. You don't really expect them to admit failure and defeat, right? The PS3 is an expensive beast and if Sony wants to put one in each household then they can but they would stay in the red figures for a long time. A lower price will happen but it can't (and won't) be low enough to defeat the 360 and especially the Wii. With any luck the PS3 can become the 360's equal but their best bet is to keep out of the red numbers, be happy with their current marketshare and prepare to fight to good fight with the PS4.