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Gballzack is right the sooner and bigger the drop the worse things look for you, news will report that Sony is in trouble. They'll talk about how much they are losing on the console and it will look bad.

 

Secondly Sony cannot afford a $200 drop. For crying out loud they are losing money on the system already. You know how many games they'd have to sell to those people just to make their money back? Their attach rate in japan already sucks. Sony is losing more money then it's making and a price drop will only speed that up. stock holders will be really pissed if they drop the price.