Think one of the big keys to the lowering of the cost of the PS3 is its production and the current systems already made to be sold and well its hard to see that happening right now. A quick glance at the last weeks sales (~50k) just on this site shows it loosing ground in 2 out of 3 regions to its competetors with the Wii outselling it everywhere and the Xbox360 everywhere but Japan. To put it simply it is very unlikely the PS3 can win this generation the Xbox360 and Wii are in much better position for a price war if Sony decided to start one. Also I speculate that with blu-ray and HD-DVD player combos dropping in price those that consider the system in 2008 as soley a blu-ray player will probably have choices that are comparativly priced with less risk involved expecially if HD-DVD's decide to lower their price point anyways that last part is pure speculation.
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