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I think Sony could gain a lot of momentum against Microsoft with a price drop here. Of course, there will be a few people who paid $600 for a PS3 less than a year ago and they may be upset that it's now available for $300, if there is a price drop, but that's how it goes when a product is priced more than the market can bear (see: the Apple $200 price drop with the iphone).

I'd love to see a price drop. Then when some sweet games come out for the system (hopefully this year), Sony can really cash-in in terms of sales.