At this point, I suspect a PS3 price drop may be important just to keep the third-party publishers interested. The first-party titles coming up are impressive, but at retail consumers are more impressed by a solid lineup on display. So that may be a very good reason to drop the price NOW and hope to build the install base in time for the holidays -- otherwise some of the planned and anticipated titles may not actually make it to market this year (or ever.)
The drop certainly puts the PS3 more favorably in competition with the XBox 360 Elite -- having Wi-Fi and HDMI built-in makes this a fine and more cost-effective alternative for me personally, 120 GB of HD space doesn't mean as much to me as not having to spend $100 to get online wirelessly.
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