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Didn't expect this so soon. If indeed it is true, then this would be a massive boost to the PS3. However, the competition is likely to reply in turn, so I wouldn't go as far as to say that a cheaper PS3 will threaten the status quo. ;)

There is certainly no need to fear a PS3 price drop as has been suggested. Quite the contrary actually - A PS3 price drop will result in reductions across the board. Nintendo can respond in kind with new colours and the Wii's first price reduction - ideas that were first hinted at, as far back as 2006.