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Sony must cut the PS3 price soon not wait out until before Xmas 2008. Cheaper price represents value people like cheaper consoles. Sorry for all those people who got ripped off by Sony paying $600 US on its launch. Over in Australia it was $1000 AU for the 60GB PS3 model with no games on launch day March 23rd 2007.
PS3 40GB model retails for $399 US.
Now the price in Australia is $700 AU for the 40GB PS3 model with no games.

The price cuts of the XBox 360 is a great thing people prefer the cheaper console which is value for money, they do not like being ripped off by some faceless corporation.