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In Europe the PS3 is currently outselling the Xbox 360 despite the fact one costs £299 and the other starts at £159. 

 Even without a price cut this year I imagine it will continue to do this. Looking at the way Sony dropped the price of the PS2, I predict in Europe at least they'll drop the price to £249 in the run up to Christmas and drop the price again to £199 in late 2009/early 2010.

 Also the PS3 is still one of the cheaper Blu-Ray players at the moment, in fact looking at the cost and features compared to other Blu-ray players (it plays GTA4!) its the only one worth considering at the moment.

 If the price of Blu-ray players drops significantly though, this could cause a premature fall in price of the PS3.