Sony is doing reasonably well in Europe... and Europe is the only region where its prospects are good and i m sure can afford to loose it. So with the recent price cut by MS i think Sony needs to do something... they can't just sit and wait and see how the market react to the price cut... especially when a title like GTA IV is about to launch in a month. If they loose a momentum once, its really hard to capture as they have seen in Japan and NA. So Sony has possibly three options 1) Cut the price across all SKUs -- best option 2) Launch a new bundle with deeper discounts ( this way they get some softwares sales too, but if the end price remains double the XBOX may be people will not buy it much and the it may not effect as much as possible) -- so a bit risky 3) Launch a new SKU at lower price with like 30 GB HDD and much lower price... -- It will take sometime to get this out.. so it might be a bit too late by then So wots your opinion... i think Sony is going to take 2nd option... but i wish they go for the first.