PS3 would pwn at that price. $299 a steal.

I feel like the issue is more complicated than you propose.

If we're talking about it based on IF the consoles dropped to these prices, yes the PS3 would gain the most simply because the Wii isn't having any problems at the price it currently is at. There is the thought, though, that with a lower priced PS3 the Wii will stop selling as well, than a drop to $199 would do it quite well--it's the aforementioned magic number for later adopters and would be enough, I believe, to keep Wii at the head of the pack, on top of the obvious many other ways and reasons Wii is winning the generation. 360 will continue to drop under this model, with it's various problems still intact.

Another matter entirely is whethor or not this will actually happen. Considering the extreme expense PS3 consoles continue to be for Sony, I seriously doubt we'll be a $100 cut in 2008. Maybe at some point in 2009, but I think the most you can hope for is $349/$449 in the near term (Conair's suggestion of $249/$349 is out of question, especially with BC. The way they were able to cut it to $399/$499 was by pretty much axing BC). In this model they gain a little, but Wii would probably be able to stay well ahead of them even by staying at $249. It's just too big a difference in price for most people, especially with the $10 difference in game prices, which does add up.

It's all relative, I'd think. If the PS3 drops the price to $300, but the 360 drops to $200, there's no net benefit for either one. The PS3 just has to drop its price to be close to the 360, the 360 has to drop its price to be below the PS3. This of course isn't counting the total sales (which increase after any price drop for any platform), but marketshare, which I think is what they're going after this early in the game. The big sales numbers always seem to come not only after the prices have dropped but there's a "winner" declared, since people don't want to get stuck with the one that loses (and therefore has less games). This may be different this time around, since the 360 and PS3 seem to be similar enough at this point that most of the big games are cross-platform.

As always, the Wii is in a league of its own, there's no reason to drop the price when they can't even keep them on the shelves. I'm sure however they have a lot of room to drop prices, since it's probably far cheaper than either the PS3 or 360 to produce. Price drops for the Wii will come on the day you see a Wii in a display case at your local retailer - and the following day, and for all forseeable future thereafter, you won't be able to find another one.

To me, Sony needs a price cut before GTAIV comes out in Europe. Sure, its probably too late, but an arcade 360 over here is almost half the price of a PS3. (UK), im not sure about the situation in the rest of europe but that doesnt bode well for Sony.

I think the percentage rise in sales for all three could be fairly equal, but that would of course constitute a higher sheer number for the Wii for instance.

wii followed by ps3 and finally 360

The PS3 has the most to gain from a price cut and I reckon it will see either one big or two small price cuts this year. I believe 360 will see price cuts outside europe seeing as we just got one but unless demand really slows I doubt wii will get one this year.

The PS3 doesn't need a price cut it needs the quality games to start releasing. I would have thought you guys would have realised that price-cuts barely make a difference - look at the Gamecube, the N64, the Xbox and the 360.

 One group that might/probably will by the Wii at a lower price would be those wanting it as a secondary console to PS3 or X360.  A bit too expensive to justify at the $250 price, but at a cheaper price they are willing to pay to have a different set of games.