I think they can't afford that big of a price drop.

$100 is over kill, no idea why everyone is obsessed with $200 mark. $50 less is better than nothing on a console that already offers so much. Many considered the last price a steal, this is even better.

the entry model for vita will be $249

the entry model for PS3 is $249

$299 for the 320GB PS3 and $299 for the 3G enabled  VITA

if the ps3 ends up selling over 200k WW because of this price cut the next upcoming weeks, that's almost 2:1 in comparison to what the 360 and Wii would be selling which would be a little over 100K, that's significant

You are correct. but if a didn't already own a PS3, I would take a PS3  over a vita if the two are at the same price. The vita has to build a game library yet. the PS3 is the console with the better all around game library right now, and uncharted 3, Skyrim and Resitance 3 are coming soon.

The smart choice is always never to early adopt, but because the games on Vita offer me something different and something I want, I may have to this time around.

I don't think a $50 cut at this point in the generation is going to cause a major sales increase. There'll be a significant increase to around the 200k mark, but I can't see pre-holiday sales topping 220k. This is in part because I predict that MS might follow suit and the WiiU announcement might get the 'next gen is coming' alarm bells ringing.

I also believe that consoles are competing a lot with iPads ect nowadays.

I dont think the ps3 and psv being the same price is a big deal, the ps3 is 5-6 years old? The psv isnt even out yet. The psv will be something new when it comes out, the ps3 is heading into its twilight years. I think its only logical for the price points to be reflective of that.

I need to see the conference footage now!!! :(

I honestly don't see how Sony expects to meet their 15m projection. They only hit 14.3m last year. And their tracking below last year quite a bit.

I honestly don't see this $50 price cut increasing holiday sales much. At best, it'll match last year's holiday sales. But that won't even be enough to counter the YOY loss set by the beginning of the year. Even if holiday sales somehow countered the current YOY loss, that would only be 14.3m

I think Sony was over-confident in Move/3D/Exclusive-lineup and over-estimated. We'll see what happens I guess. I hope I'm wrong though.

the 3ds is still $20 more expensive than a brand new wii with mario kart