It would be quite difficult for Sony to cut PS3 hardware prices again, unless they want to keep losing money in their games division.
With the US$ dropping, revenue from US sales keeps falling relative to other sales - which is generally their biggest single market.
I doubt that European PS3 selling price is that much higher than the US$ selling price of the PS3 to distributors and retailers.
Generally, the higher prices for European goods is more of a reflection of the inefficiency of the distribution and retail channels, as well as red tape and taxes.
Just like here in Canada, where the currency is equal to the US but because of structural (the above) reasons, prices are generally 20% to 40% higher than in the US.
Also, if PS3s are sold at US$350 to USA retailers/distributors - then I doubt European retailers and distributors would accept buying it for the equivalent of US$450, even though the Euro is currently a much stronger currency.
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