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i don't agree with people saying that they need the price drop to get more profitable. Sony will never make up that 1 billion dollars with the PS3, and they certainly won't make up the 2 billion they lost over the last fiscal year. They're just gonna have to wait until next year when a price drop is less costly.
The difference between a successful and a failed console will certainly make up that amount, and that may well be what's at stake here. And as for waiting until it's less costly, the dilemma is that waiting could cost them far more than a drop now ever could. If they don't have a sizeable install base by early 2008, 3rd party support will start to erode fast. Once that happens, sales will fall even faster and there'll be no recovering. I don't think the PS3 is quite on that path yet. They've still got a lot of awesome titles lined up for the end of this year or early 2008. But I don't know if they can pull it off without a price drop by then, either.