"We are re-examining our [PS3] budgeting process in terms of pricing and volume. Sales assumptions change and the market is competitive. We are in the midst of revisiting our strategy for the PS3."

If that isn't vague I do not know what is. 

I just want to respond about the comment you made about the games that were supposed to come out this spring for PS3. The fact is the games were not "weak" the only game that came out that people were really lokking forward to is Motor storm. I wouldn't consider that to be "weak", but that isn't the problem. The games that were to come this spring got pushed back Lair and Heavenly sword are 2 I am waiting for that were slated for a spring release. I am sure some of these moves are to coincide with a price drop. Sony is in a good position right now a $600 machine with virtualy no good press in a year has sold almost 3.5 million units with "weak" games. just curious though what is a "weak" game  with 30 games out and at least 3 of those are great thats a good % Resistance, Virtua Fighter,Motorstorm,Oblivion those are very good games i would say there are alot more weak games on other systems. I think if you were arguing that there not enough games thats fine ,but the quality is there

Price cut soon? 

Probably.  The UK price cut is just the first sign of changes to come

 Sony didn't price cut. The retailers cut the price.

Ah, ok.

 Yes, but the did these cuts for a reason: A very low price range between the price that they had to pay and the advertised price, together with a very high inventory.

This means their money lies in their stores and they can't buy better selling things with it. So by selling it under price they get rid of their inventory and they get some of their money back. On the other hand it puts pressure on other leaders to lower their prices too. At the same time many dealers won't restock PS-3 as long as some shops sell them under price, that gives Sony a reason to give dealers better conditions, to buy new stock and not to drop their inventory to very low levels.  

 I think sony could have a relaunch possibly later this year (september maybe?) with the  release of several major first party titles, a price cut and the release of different colours (white and silver have been shown) and in europe the release of the 20 gig system

This sounds kind of like a revolt from the retailers against sony.

Not so much a revolt as desperation. Nobody wants to keep expensive paper weights in their stores.

i might be jumpin the gun a bit but they need to lower that price of the 60 gig at least to 500 by the end of the year..sayin 450 is wishful thinkin...