Is it not a couter point that the Xbox360 has been unable to reduce its price more than $125 considering its sale of 3 times as many units as the PS3 and year lead to reduce its cost of production. I can't really see the $100 dollar price cut for the PS3 being anything but detrimental to Sony overall it may pick up sales but still believe a $500 dollar price is going to be a giant mental block for most consumers. Its most likely in Sony's best interest to leave the price alone if they aren't going to drop it by $200 which would cause them a huge loss at the moment, because at $500 your still appealing to what would be a niche market albeit slightly larger not the mass market and for that slightly larger market share that has to be around 1% you undercut all your price reducing as of yet virtually guaranteeing similar losses to your first two quarters and as many have mentioned you gain none of that $840 per system sunk cost back on the 2 million sitting in warehouse in all actuality the price of these systems goes up as you pay for their storage.
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