BR is already dominating, with sales at 2:1 or 3:1. The problem is HDDVD is too stubborn to die, and are trying to pay off studios to keep the format alive a litle longer (I believe the Paramount exclusivity contract expires after 2008).
As is, the PS3 is losing a good chunk of change for Sony, and I doubt that they had planned on having 2 price cuts within the span of 6 months. I think they are doing all that they can do at this point. I would not expect another price drop until this spring at the earliest.
The irony is that the BR is part of what makes the PS3 so expensive, and thus shares a good deal of blame for that systems' low sales, but at the same time the PS3 sales are great next to stand alone HD players, so the PS3 is the thing that gave the 360 the edge. I can only wonder what would have happened had the 360 launched with built in HD, or Sony had launched without it.
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