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Hmm, I'm doubtful about this rumor. Probably there's some pack-in deal, one of those get-a-credit-card or buy-an-HDTV deals where they lower the price of the PS3, but winter sales are always slow, and the great games aren't out there just yet. A $299/299EUR price-point is unquestionably coming this year, and will supercharge PS3 sales, but I still think November 2008 is far more likely.

That said, (1) I didn't think they'd come out with a $399/399EUR model until this spring -- I was wrong by six months -- and (2) Sony is making screaming amounts of money in Europe (399EUR = $600 US), so they have room to match any price reductions by Microsoft.