Price cuts simply go hand in hand with reduced production costs. There really isn't any reason for either MS or SCE to take losses on every unit sold (however small), much less increase those losses for the sole reason of opening up the MSRP to lower price demographics.
Dropping price simply to entice more consumers is almost a subtle form of product dumping.
While it's accepted most units for a given console platform will sell under $200 (overall lifetime sales), that price point happens when manufacturing and material costs minimize or eliminate losses on hardware sales.
Kind of stupid comment/observation IMO given that the PS2 debuted at $299. Naturally a $599 PS3 isn't going to drop to the same price as a PS2 after it had been on the market for 3 years.
A more intelligent thing to say would have been (the obvious) that the PS3 in particular will sell more than half of its lifetime sales at a price under $200.
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