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NotStan said:

Yeah but they are also launching a phone AND a PSP2 this year, I don't think that the shareholders will be too happy if it slips back into red again, too much in the year to warrant such a high drop! $50 will be a lucky thought, well in my opinion anyway, although I'd like a $199 PS3, would definitely pick one up at that price.

Xperia Play will be sold at a profit or subsidized by carriers.  It's also Sony Ericson's deal, SCE doesn't have to worry about it really.

I hadn't really considered PSP2 fully though... yeah, it may only end up being a $50 cut.  But I still think Sony has to cut some in 2011 to keep from falling behind.