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All current indications still point to a small loss in America on each PS3 sold. This will be echoed in Europe.

Given the economic climate I feel they may now be breaking even in the home territories.

I doubt that SONY would want to risk all now that they are in a more fiscally comfortable position.

A price cut will almost certainly be held back until the holiday season.

Of course this all depends on the competition. One way to hand the advantage back to Microsoft would be to allow them to sell more 360's on the run up to NATAL.

Nintendo dont seem overly fussed. They really do seem to have judged everything right this gen. Power, Control and Pricepoint.