I would be ecstatic if Sony decided to drop the price of the PS3. I know that it would move up my anticipated "buy" date to get one. Money isn't the reason why I haven't bought one yet, it's the lack of quality games. There are maybe 2 games out right now that I'd enjoy and play a lot, but once there are a few more and a "must have" game released I know it will be time to jump on the PS3.
Even though i have a 360 already, I'd rather play a game like GTA4 on the PS3. It could be nostalgia for that because I always played my GTA games on the PS2. I just think that in the end, the reason why I want the PS3 is because it's the most advanced system (barring controls like the wiimote, which honestly doesn't interest me) out there and will provide future technologies that will come out in the years to come.
Don't underestimate the power and money that Sony has. They can afford to take a hit on the PS3 if it means that they will increase sales in games, as well as Blu-Ray movies. Not everyone will jump on the Blu-ray movie part, but I have a feeling that a good portion of those who buy the PS3 will. Also, the typical Playstation owner buys at the least 2-3 titles a year, with some buying many more, and some buying only 1-2 a year. With the release of many new anticipated titles coming out, even those that are multi-platform, they will still sell their fair share. For those who haven't bought next gen and are debating between the 360 and PS3, if the price difference between a PS3 and a xbox premium is only $100, they may decide that the PS3 gives them more for just that $100 difference.
My pokemon brings all the nerds to the yard. And they're like, "You wanna trade cards?" Damn right, I wanna trade cards. I'll trade this, but not my charizard.
