With a $100 price cut,the system will still cost $500,which still seems to be too much for many people,and there´s still MS,probably willing to drop the price too,as soon as Sony makes the 1st move.

 This is true, MS making the first move in launching the 360 was a very good decision.

Yeah. It worked for the PS2. MS was smarter this time around. They will even get a larger market in Japan, but nothing near Wii and PS3. That may be what will cost it its WW dominace. However, I am confident they will take NA, especially because of GTA.

Sony always has a price cut on it's hardware's second anniversary.. so it looking into it is a joke.. its going to happen.

They are looking to see if they have to do it sooner than last gen, where it was 19 months.

Who's mocking them?

Finally, a humble Sony. It's about time they realized their own problems instead of saying crap like the Wii is a fad and it has no longevity.

Mr. Kutaragi was notorious within the company for his reluctance to communicate with his bosses or other units. In 2005, Mr. Kutaragi hosted an event at a big electronics conference in Las Vegas to celebrate the U.S. launch of the PlayStation Portable handheld game machine -- one of the company's biggest products that year. He didn't invite executives from Sony's electronics division, which provided the parts.

In developing the PlayStation 3 console, the device's latest iteration, Mr. Kutaragi went over budget on development costs without informing Mr. Stringer, according to a person familiar with the situation. When Mr. Stringer urged Mr. Kutaragi to have dinner with the heads of the electronics division, he did so just once a year, this person said. A spokeswoman for Mr. Kutaragi declined to comment.

In September, Mr. Kutaragi announced Sony was halving shipments of the new PlayStation to the U.S. and Japan and was pushing back its European launch. At a news conference, Mr. Kutaragi blamed Sony's electronics group for failing to produce enough of a critical component, exposing his tense relationship with the division.

"Ehrenberg is highly critical of Stringer, and thinks Kutaragi should have been removed much sooner:

I don't care how legendary or historically successful a manager might be - if they are unable or unwilling to adapt to the culture, the vision you, as leader, have clearly communicated, they have to go. But not two years later, after the corrosive effect of doing things "their way" has already sunk in. Having a senior manager blame other groups for his group's woes? Raising concerns of investors, suppliers and customers alike? Unacceptable everywhere and at any time in any culture.

"Still, it raises an interesting point - a lot of flak is directed at people like Kaz, Phil Harrison and Jack Tretton for Sony's current "issues", but how much are they to blame when the top of the command chain is, if you go by the WSJ article, a complete mess?"

http://kotaku.com/gaming/sony/sonys-problems-start-at-the-top-241418.php

It has been rumored that Sir Howard Stringer has been at odds with Ken Kutaragi since he took control of Sony ...

I wouldn't be too surprised to hear that Sir Howard Stringer believed that $600 was way too much to ask consumers to spend on the PS3 in the first place.

 Hasn't Peter Moore been trying to reverse his "Wii60" claim now that they are about to get the Nintendo Pwnage as well.  From what I remember, it wasn't too long ago that he was mocking the motion sensor.  The "Wii60" thing could be well described like the German-Soviet non-agression pact at the beginning of WW2.

In every business, competitors are going to mock its competitors a little bit at least.  It's business and at the end of the day, Moore, Hirai, and Iwata have a drink together.  Same with politics. 

Lately, I find Sony's PR to be alot better than it was with Ken Kuturagi.  He was a very successful leader in the console industry, but his time was coming as he elevated to his high horse.

As of NOW, the Wii is a fad.  But fads can be turned into long term successes if cards are played right, like I-pod.  So it will be interesting to see what Nintendo does.

I think Howard Stringer should be commended for being so honest about the situation.

Based on these sort of comments I think it's fair to assume that Sony have learned their lesson and that the PS4 will be a lot more sensibly priced if/when it is released.

If the definition of a 'Fad' is the same as 'Success' then you are right, otherwise I don't see how the Wii is more of a 'fad' than the PS3 or 360.

All games consoles could be described as 5 year fads I suppose.