Sony will drop the price of the PS3. Sony's main goal is for the PS3 to outsell the 360 in total console sales.

Sony wont drop anytime soon, if they do they'll have to answer to their shareholders, it wouldn't be pretty.

I wans't expecting a price drop just yet but a $50 one falls in line with their conservative pricing strategy.

Sony isn't going to change the strategy they recently promised to their investors. They're focusing on profitability. Most likely, this means no price cuts before March next year which is when they're aiming to get profitable.

 Sony's maingoal, as told by their executives, is to make the gaming division profitable. The only part of it that costs them any significant amount of money is the PS3. There will be no immediate price cut if this (hopefully) turns out to be true.

Sony's goal of profitability for the PS3 is more than just making a profit on hardware. They need to sell software as well. And they need more PS3 consoles on the market in order to do that.

Sony may wait until they see the effect of the 360 price cut before making a decision. They have already outsold the 360 every week this year so far. It is still uncertain it the US price drop will allow the 360 to overtake the PS3 long term.

Expect a price drop with the Cell shrink to 45mn and the GPU shrink. Probably $50 in the August-October time frame.

If true that will definately boost 360 sales and level the playing field ww with Sony.

I doubt Sony will cut prices, at least not until the holidays. They'll settle for beating MS in 2 of 3 markets for now. They want profits not more losses.

@ Makingmusic

You may have something there... The flyer doesn't mention the Elite or the Core, and I find it hard to believe that the flyer wouldn't be advertising all of those. And even if the premium was the only price drop, I find it hard to believe that it'd be priced so close to the Arcade, and so far from the elite.

Bringing in the 60 GB for 350 is probably where it is, as that rumour has always had the most traction, and been the most logical.

The price cut will initially boost 360 hardware in US by 40 000 first week. Up from 40k to 80k. 360 hardware should be boosted by 20 000 on average week sales. Increasing from 40k to 60k

I think they do need a price cut. 

IF they are clearing 20GB to make way for 60GB then I think the 60GB will be at $300 in time for Madden.

The point is that the thread title questions that it is "only" $50 bucks.  And the point is that there is nothing "only" about it.  It's a big cut.  Almost 20% of the price.  People act like these companies can just drop $100 off the prices whenever they have to pee.