This was a good time for Sony to make a move, and they've made a very safe one here. MS can't afford to respond, and they really shouldn't since the price isn't in direct competition with theirs. I'd buy the idea that a $400 playstation 3 would outsell a $300 360, but not this really. It's going to clear Sony's stock of old systems that cost them too much to make. Chances are that they'll release a new model in the fall (once the old stock is clear) that costs them less to produce.
While I agree with ssj12 that they will proably want to be agressive with their price cuts, I don't see another coming this year. A new model to replace the older, sure, but another price cut can't possibly come until next spring unless this is noticably less effective than the PSP price cut (which was about the same %). They made this price point because they don't want MS to respond, after all.
I just wish Sony was a little more agressive. They really should have undercut the 360 Elite. That would have been a much bolder statement, especially if they matched it with a European cut of similar measures to crush the launch of the Elite.
It seems E3 time is still a semi-big deal, what with both Sony and MS tossing out a billion dollars here and there to clean up the blemishes on their reputations.
You do not have the right to never be offended.
