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Hirai also noted that the company’s long-term PS3 pricing strategy is to likely match that adopted for its predecessor, with price cuts brought into effect throughout the system’s lifetime, but price reductions won’t occur again until the next-gen console becomes firmly established as a mass-market system with a strong software portfolio.

I was thinking about this earlier today ...

If Sony has any intentions of turning a profit off of the PS3 it is fairly unlikely that we will see further price reductions in the next 12 months; they really need to reduce the cost of manufacturing to a level where the existing models are turning a profit before they cut the price again.