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NotStan said:

$100 drop for PS3? You really think they can afford to do that without operating at a loss?

Wether they can afford it or not, I think Sony will need to do it to keep from falling behind Microsoft.  Slim and Kinect have really revitalized 360, while PS3's slim effect is somewhat faded and Move was total non-starter.

Then again, Sony also has to launch PSP2 this year (likely at a loss on hardware upfront) so who knows how things will shake out?  If they don't drop $100 on PS3 though, I think their declines this year will echo Nintendo's.