My thoughts on how Sony views the PS3.

[dallas]

The ps3 is doing fine...........

-It just got PSN plus adding another revenue source
-It is getting steamworks, which will give it access to the more technical minded gamers, a group that has been pretty loyal to the 360 because this group really likes online play.  Now, they'll have another reason to shift to the PS3.  This is a big thing.
-They're getting the 360's version of netflix, so that you won't have to mess with the disc
-The PS3 is getting the ability to use GoogleTV 2011
-The PS3 is concentrating on a bigger gaming market-the games that fall along the "hardcore" category, and so don't need to split their focus to the Move sideshow, as MS is doing with their respective kinect system.

So the PS3 is becoming a lot more valuable for purchase no matter your perspective

Now I expect a more permanent price cut from the PS3/360 this year....MS definitely has the $$$ to pay for it, and the PS3 has some extra $$$ coming in from the PSNplus, as well as the profit that it is currently getting from the hardware but I expect Sony to pull the same low or slightly negative profit strategy that it has run since the PS3 started and make a cut.  At least though, that it can make a fair cut, say $50 and not become financially in too bad shape.