The PS3 sold a lot better with a mild price cut and no real software. The 360 sold a lot better with a small price cut and good software. Some folks are just waiting for a certain price point and will buy it, regardless of software. I know folks who are just waiting to see "PS3: $299" or "360: $199" and they will step into the next gen. 

Legend11 sony is not losing any money the ps3 cost 400 to make  they sell the 80 gb for 499 so they make 100 on those so they are doing good and they can afford a price drop even more because blu ary diodes are cheper to manufactuer now

They could really use a drop very soon in others. I cant see the point of waiting much longer, the big games will add draw, but they need something in the immediate short term. I still think they should give a million away in Japan for 100$ with a game, just to drum up some interest. They should really try and kick Sony in the teeth while they can still reach.

Yeah .. We love price drop
I hope they do three or four if they can

Microsoft has all the time in the world to have a price drop, they are selling almost evenly with the PS3 across the world. Sony is the one that must act and i feel Microsoft will wait until Sony drops the price before they do anything. Microsoft just wants to play it smart this generation.

I feel next gen is when Microsoft will make big moves to crush Nintendo and Sony in the gaming world, MS has all the money in the world to win the console wars if they want.

Neither MS nor Sony is 'desperate' from a big picture perspective. Sony have had years of profits from this industry while MS have only recently made any.

Sure Sony short term won't like the massive whole from the PS3 taking off slowly but they are a very large company that just like MS knows its the longer game that matters.

Sony should be able to reduce cost of PS3 much faster than the underlying 360 cost would have reduced (they are a seasoned manufacturer after all, which MS obviously isn't) so I suspect they will continue to make room for price cuts if they deem them necessary.

I agree with most that overall MS is probably in no hurry. If they do price drop sooner it will be because they feel they need to tractically in Europe. But I think sales in US, coupled with just going profitable for a few quarters will deter them.

Whatever they say to analyts going profitable then immediately dropping price and perhaps impacting that profitability would be negatively percieved by industry analysts - and I doubt they want that. Also, I think they will settle for gaining lead with US hardcore and as much marketshare in Japan and Others as they can get. The numbers already show they cannot hope to be number 1 anywhere but US this gen (before folks flame that is what the numbers show - while Wii sales may fade, while 360 might fight back there is no proof of this in current trends).

Sony in fact might price drop frst assuming the indications of rapid cost reductions are true. A price drop in Others would likely give them a serious spike vs 360 and would also help in Japan. Also a price drop would get them more traction in US with gamers who would like both systems but don't want to drop the money for a PS3 just for a few exclusives.

Now that apparently GTA is confirmed for a late april release, my prediction for a price drop will come true. The Pro in March $279.

Yes, last time was a $50 drop, but I think it was RocketPig who showed the combo pricepoints of $199 Arcade, $279 Pro and $349 Elite were more logical (or else the difference between Arcade and Pro becomes too big). I'm not really sure about a $349 Elite though.

So call that a $70 drop (since the Pro is the main SKU). That's my prediction.

March.

i think the sooner the better, they can wait but i would cut the price in febuary or march

Reasonable, the reason posters are calling Sony desperate is because they have already lost more money on the PS3 than the made off of the PS2.

Darc@

Do you have evidence for that? I'm not doubting you but I do find it hard to believe that they've lost more on PS3 than they've made in videogames (i.e. I meant PS1, PS2 and PSP plus games revenue).