Speculation seems to be mushrooming out of hand that Sony will cut the ps3 price sooner than later now . How much do you think it will be reduced by and when and what will the effect be . IMO i expect a cut of $100 dollars on or b4 August the 1st and will increase sales quite substantially alongside Lair and Heavenly sword .

I don't know about in the states but over here in the UK, I personally feel Sony has to lower the price purely due to unfair pricing. Current RRP is £425 which with the current currency rate = $850, so once the next batch of PS3's arrive I would like to see a price reduction. Will this happen? probably not.

Once again the UK market is being used to subsidise the rest of Europe.  Can only hope the European Union takes notice of unfair pricing like they did with iTunes, where they forced Apple to lower the prices of its downloadable music.

Cheapest price for a PS3 in the UK I have seen though is £382.50 with the retailer taking a loss on each unit, they had plenty of stock even with this offer in place. 

PS3 sales are getting so bad Sony will have to cut its price sooner rather than later if it wants to have any chance of pulling off a #2 showing this generation.  Whether even that will work remains to be seen.  I'm sure glad I don't own Sony stock or work in their accounting department right about now. 

I think they should just go out cut the price by $200 dollars accept the loss , will be offset by HD tvs anyway and make it up with huge software sales . I think that b4 xmas would be a killer move imo .

 Would you buy one if they cut their price?

It's odd. I am sure they will gain some more sales but is it worth it to take such a loss? I don't think so. The quality/amount of the PS3 games doesn't warrant a purchase. So whatever small increase in sales would not be worth it. I am pretty sure that 3 million sold with such a weak game selection should be expected and I don't think sony is sweating bullets. The situation seems so dire from the outside camps its amazing. 

Well I think Sony will reduce the price in few time ,at least in Japan and US .Europe will have to wait a bit longer as it has only been one month out and still selling better than the competition .

According to Sony they're not planning to drop the price:

http://www.computerandvideogames.com/article.php?id=162243

According to Sony they weren't going to sell the PS3 for $600 until they did.  According to Sony they weren't going to kill the 20gig version until they did.  According to Sony they weren't going to consider a bigger hard drive version of the PS3 until they did.  Sony has a long track record of flat out lying right up until they announce whatever it is so I wouldn't believe them until they officially announce something (even then it's iffy).

I don't think Sony will do better with a price-cut. This year at least. Because the Unique Selling Points ain't ready for big sales. Blu-ray has to win the DVD-wars. There are not many games. They need a online network Home up and going. They are going to wait and what this chrismas does. PS3 + game + controller is the best they can offer this year.

Q2 2008 could be a price drop. Only if the PS3 is selling bad. End of 2007 7million or less is bad. But I don't think that would happen. Q4 2008 will be a price drop. At least $100.

I certainly wouldn't but just because I would or wouldn't do something doesn't mean everyone would or wouldn't.  Is 3 million sold with such a "weak game selection" unexpected? Yes it is for something with PLAYSTATION stamped on it.  It was after all supposed to sell 5 million with a no game selection.  Sony projected 6 million sales with the current selection in mind so I would say 3 million is very unexpected.  At any rate, since when is the PS3's game selection so weak?  Until the recent batch of games failed to move any systems all I've heard from Sony fanboys is how great its game selection was and that was why it was going to beat the Wii in the Spring.  Now it's become apparent to everyone that the PS3 hasn't sold despite these games all of a sudden these games are "weak"?  At any rate, yes it is dire for a company division that is losing $500 million a quarter to be saddled with another $100-200 million in per quarter losses just to stay in the game.