If the PS3 was $150 right now:

It would not have a Blu-Ray drive or built in wi-fi and would still be taking a $50 loss on hardware sold.

It would sell alot, and probably surpass the 360 this year driving MS to cut the 360 price bankrupting both companies.

I edited the OP hypothetical a little bit to avoid more "Sony will go out of business" replies since those aren't that interesting.

Would MS have to follow with a $100 arcade and a $150 elite? What would the Wii do?

If the PS3 was $150 ...

is immaterial, because I still wouldn't have enough damn money to afford it at the moment.

Nintendo would price match and still sell the most.

Microsoft would probably kill the Arcade, and bring back the Pro at $149 to feature match.  They'd drop the Elite to $249 or $199.

Oh, and Sony would go out of business.

sony would go bankrupt

Ah, but at the higher price Sony wasn't selling as many PS3's. If the price was $150, then they would be selling millions more and thereby causing MASSIVE DAMAGE Losses for them. The billions in losses would pile up very quickly and bankrupt the company. (RIDGE RACER!)

It would be neck and neck with the Wii until the price cut wears off.

But it would do 275 - 350 k a week.

u didn't read my reply.

i said in there even though the HW sales would be off the hook,it could go as high as 25m per year.they would be taking a loss of $150 and yealy losses would have been around $3.5b but their software sales would have been off the hook too and blu-ray adaption rate would kill the DVD.SO THEIR ROYALIES WOULD also be high.

last year Activisions chairman said they paid $500m in just royalties to Sony for year 2008 when PS3 software sales were considerably low.if PS3 was cheaper,they would easily make it up for the losses by the software sales of games plus movie sales that would trump the DVD

sales would sky rocket maybe start selling at wiii like levels, i don't think ms would lower price because they're aiming for profits not losses and the ninty might make cuts on the wii