I really wish more would be done about the anti-PS3 trolls...
Anyway, Sony's best bet at the moment is to make a $150 price cut in August.
First, there is the matter of the competition. While they can do their best to ignore the Wii, and they will, they do have to fight off the 360. By putting their price cut into effect before the launch of Halo3 they will deffinitely derail a lot of MS's momentum.
By dropping it $150 they undercut the elite while still offering more than the elite does. That makes MS look pretty bad, but they can't really do much about it because of how new the system is. While they can lower their Premium unit's cost, which will affect sales much more than the elite, it sitll won't make them look good comparison when there are still a lot of people waiting to buy the PS3 when it's cheaper.
Second is the matter of how. As we all know, the PS3 is being sold at a sizeable loss. What most people seem to miss is that Sony has always launched their consoles at $200 less than manufacturing costs. Atarti at one point threatened to sue Sony if they launched the PS1 at less than $500 because they would be subsidizing their console to push competitors out of business. Of course, Atari pretty much pushed themselves out of business so the matter was moot.
The difference between the PS3 and its two predecessors, howeverm is the fact that neither of them were even remotely close to having their manufacturing costs reduced by the amount PS3 costs are dropping. Between the 65nm chips, diving costs of blu-ray diodes, and the fact that the system isn't going to need the EE much longer (if it ever needed it at all) it really is dropping cost faster than a PlayStation ever has. God knows whatever other changes may be made to it, but it's certain that the PS3 will cost $100 less per unit to make before its first anniversary even comes up.
Third, The blu-ray business needs the PS3. BR is, in essence, Sony's golden ticket. If they can establish the format they will make money off of every movie sold for at least a number of years. Movies sell a lot more than video games. Really, it doesn't take a rocket scientist to figure out that Sony has more at stake than the video game industry here, and that's the way it has alway sbeen with Sony machines. they want to win the big picture, and considering that they are completely owning the HDDVD market off of the back of PS3 (because we know they are being outsold on systems 4 to 1 without it) it's a good bet they aren't going to give up that edge. By reducing the cost of the PS3 they can only solidify their dominance of the HDDVD market, and that means a lot of money for them.
It makes sense, and while some people at Sony say it won't happen that doesn't mean it won't. there has obviously been a lack of communication between divisions in the past, and it wouldn't be a shock for someone outside of the PS group came along and said "price cut" in the last few months in regards to the obvious decrease in production costs.