(Rumor) New Price drop comming this holiday (yes even Nintendo)

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nightsurge said:

I see a Nintendo cut as a possibility. An MS cut is pretty much guaranteed with the slim/redesign coming. Sony already said they won't cut price for another year to focus on profitability.

The prices I could see coming about are as follows:

Wii - $149
360 Arcade Slim - $149 ($199 with Natal)
360 Elite Slim - $199 ($249 with Natal)
PS3 Base Model - $299 ($349 with full Move [controller + eye + subcontroller + game] - essentially a $50 cut)
PS3 Larger HDD Model - $349 ($399 with full Move - essentially a $50 cut)

I don't see Sony living with a $100 gap between entry level PS3 and 360 Elite. At least not all the way to Christmas. Perhaps they'll try to stay at $299 on Move launch, but if they lose sales momentum I think they'll price drop for the holidays.

If they can do a $50 price cut with Move then why not a $50 price cut without Move and bundle in Move at full price? All depends on whether they want to keep selling consoles or make sure a large proportion of consoles they sell include Move. Personally I think it's better to keep up the momentum with increasing the PS3 install base. Being the only console that doesn't drop price this year will mean a major shift in momentum to the other 2. Even if it's only deferred buying in anticipation that PS3 must surely drop in price soon, the loss of momentum will be significant. PS3's position is much stronger now than a year ago, but it's still in a fragile situation.

If Slim Elite swings in at $249 and $299 with Natal, then I think PS3 can price itself according to your prediction for 6 months. But then it will need to drop the entry level price.