I always have extreme doubt when I see things like this when they try to use smaller HDD as justification why price can decrease.

Both Sony and MS are going to sell the consoles with HDD at the most cost effective size drive available. Currently that is the drives in the 200GB range.  So a 120GB drive basiclly says wishful thinking to me.  120GB drives cost more to produce than larger drives now.   This is why the new 360 S comes with a 250GB drive. It isnt because MS thinks you need more space.

No he isn't. He spreads false rumours with hopes of people visiting his site, getting him hits and $$$$

I don't see how Sony could possibly pull off another $100 pricecut.  It would be ridiculous if they did though.

$100, no.         If Sony did that they would bleed red for two years and never drop price again. 

$50,  is very do-able now that they are making more $$ from the PSN - with the PSN

nope wil  never see that for at leats 2 years.. maybe 249....MAYBE! next year

So when they finally break even for each sold PS3 they will suddenly lower the price from 299$ to 199$ and lose millions if not billions yet again... yeah riiiight...

Sony just needs to cut to $249, so that PS3 and Move would cost $348 total if bought separed and even less if bundled, to avoid making it unattractive.

A cut to $199 is a big thing, Sony must not waste it making it too early (and losing money too), also considering that this year there are already Move and GT5 to support sales, so a $50 cut, mainly made to avoid excessive total prices for complete Move solutions, should be enough.

Highly unlikely.

The PS3 is finally making a very little profit, why should Sony go back to making huge losses per console if it's not necessary?

With the old 360 models currently being on clearance, the only 360 model that will soon be available costs 299, the same price as the PS3 slim. Yet the PS3 slim offers so much more for the same price, so why sell it for even less than the 360S? It would be silly for Sony, because since the 360S is so much cheaper to produce, Microsoft could easily drop prices just after Sony, making the whole PS3 price cut effectless.

Sony may be doing another price cut, but not until they are pretty much forced to.

Well, OP...you're gonna catch a lot of flack

And as much as I don't like people hopping on HHG because he HAS MADE CORRECT PREDICTIONS IN THE PAST....I simply don't see this happening. Why just now tell us (this past E3) that the Move bundle is $399...then drop it to $299? 

they pretty much need this for them to at least weaken the sales growth on the 360