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I had believed that Sony would be dropping price some time soon as well. After hearing their comments I dont think they can afford to do that right now. The US economy is just too weak at the moment.

Maybe the money they would have need to get that price drop they will put in to making better games and features of the PS3. Also, they know regardless of pricing, without good software they will never sell enough games to warrant dropping the price. All they will do is sell more consoles, which means lose more money to have them NOT buy the games that justify that price drop.

This is a reason why im almost sure well see a Wii like controller from the PS3 this E3. They need to start generation more software/peripheral sales and they probably want to feed off of the Wii hype. They are Sony, their product will be at least given a chance by lots of consumers around the world. If they can deliver a Wii like experience but somehow use Blu-Ray and the extra processing power to offer something better, they may capture some of the casual market yet. It would have to be something much better however to warrant the $150 extra cost.