Well it's kinda expected that Microsoft and Sony'll cut prices this year (The rumors about the Slim and the high price of Move could be the reasons) but seems like even NIntendo is thinking on a new price drop.

and PS3 will be announced by the end of the year, and possibly as early as next m

http://www.mcvuk.com/news/38924/Xbox-360-and-PS3-price-cuts-this-year

So it's all about competition or new Nintendo system in 2011?

I predict Wii HD.

I see a Nintendo cut as a possibility. An MS cut is pretty much guaranteed with the slim/redesign coming. Sony already said they won't cut price for another year to focus on profitability.

The prices I could see coming about are as follows:

Wii - $149
360 Arcade Slim - $149 ($199 with Natal)
360 Elite Slim - $199 ($249 with Natal)
PS3 Base Model - $299 ($349 with full Move [controller + eye + subcontroller + game] - essentially a $50 cut)
PS3 Larger HDD Model - $349 ($399 with full Move - essentially a $50 cut)

Its seems very plausible that PS360 will cut prices to accommodate their new controllers. If that does happen then yes, Wii will also need to be dropped to keep the playing field level.

In the long run it won't change anything. Wii will still be selling more than the others and will dominate holiday sales again.

Wii at $149 or $99 will be god-like it's quite cheap here in the UK still about £140 for the bundle.

cool news if true, but I do think Sony needs to stabilise or increase it's PS3 supply in NA first before a price cut.
and it's for that reason that I think MS will boast the biggest HW sales number boost from a price cut, even if it's just $25 on the arcade and $40 on the HDD models.

but that said, cutting price on base models for Sony and MS now (or soon at least) could allow them to sell the Natal and Move bundles at a bit of a premium and not look as nickel-and-dime-ish

personally I don't see the need for a Wii price cut. imo it's selling more than fine at it's current price point and will probably continue to do so even if MS and Sony drop prices.

360 price cut is certain, I agree with Soriku. It will accompany either Halo reach or Natal (or both)
PS3 price cut is very unlikely, a bundle is a possibility
Wii price cut is very unlikely, becasue a bundle has just been announced

I don't see Sony living with a $100 gap between entry level PS3 and 360 Elite. At least not all the way to Christmas. Perhaps they'll try to stay at $299 on Move launch, but if they lose sales momentum I think they'll price drop for the holidays.

If they can do a $50 price cut with Move then why not a $50 price cut without Move and bundle in Move at full price? All depends on whether they want to keep selling consoles or make sure a large proportion of consoles they sell include Move. Personally I think it's better to keep up the momentum with increasing the PS3 install base. Being the only console that doesn't drop price this year will mean a major shift in momentum to the other 2. Even if it's only deferred buying in anticipation that PS3 must surely drop in price soon, the loss of momentum will be significant. PS3's position is much stronger now than a year ago, but it's still in a fragile situation.

If Slim Elite swings in at $249 and $299 with Natal, then I think PS3 can price itself according to your prediction for 6 months. But then it will need to drop the entry level price.

^I don't think Sony has any choice but to be $100 more expensive.  The technology in the PS3 is simply a lot more expensive, surely $100 worth.  The 360 and PS3 should never be the same price to begin with, but have been for a year.  At the same price it is no wonder the PS3 is selling so much better as it does justify a lot more value.

The only way the PS3 has managed to stay remotely close in price in the past was from taking a huge loss on hardware.  Now, finally, after many revisions to hardware they are breaking even and profiting in some cases.  They said themselves they won't cut for another year to focus on profitability and I think they will indeed follow this.  Next fall 2011 will be their turn to try and come up with something to counter MS's events of this coming fall.

The 360 should naturally be about $50-100 cheaper than the PS3 no matter what.  The redesign to the 360 will only act to strengthen and prolong this constant price difference.

You aren't honestly taking a Sony representative's word on not having a price cut this year seriously, are you?

http://www.betanews.com/article/Sony-CEO-Stringer-No-PS3-price-cut/1247075944

And even if the representative did know that there were no plans for a price cut, plans can quickly change. I'm fairly certain that Sony wasn't planning on dropping the price of the PS3 to $400 less than a year after it was released at $600.