People want a price cut because for the average consumer, paying $500+ just to have the system to play games, it's ridiculous. Most gamers enjoy games(<-brilliant observation), but have other things they like to do as well.
I'm not trying to say people who do want to buy a $500-600 console are losers or have nothing better to do. Gaming is probably your biggest hobby, and I respect that. For me, music (mostly software for the creation/production of music) is where most of my money goes, but I still like gaming. However, while I am willing to spend some money on gaming, I can't put it as a priority over music. So there is a conflict of interests, and music wins. A decent price cut would greatly help to solve this problem.
Games are fun. People want to play games. People are not willing to spend hundreds of dollars in oder to play them. They want to pay what they have become used to paying. They don't want it to take up more of their income.
