No facts just bias opinion.

 The production cost of the 60gig PS3 was 841.35 on nov 06. 

TBH if he has as much sense as it seems then he won't be throwing good money after bad.

PS3 is already deemed a failure by Sony (Kutaragi Sacked) and I seriously question how much more losses the larger company are prepared to receive on it's behalf.

PS3 will no doubt recieve price drops in-line with reduced manufcturing costs (although these are made harder when you aren't manufacturing much) but I seriously doubt that the profitable side of Sony will be prepared to put their balls on the line for the sake of the PS3.

In short, Sony will not make the PS3 any more of a liability than it already is and any price drop will be in-line with reduced manufacturing costs. Talk of anything more than a $100 price drop (maximum and probably not enough) is fanciful.

I don't think they lose by far as much money on each console as was reported around release (estimations within the $250 ball-park). The PS2 cost $299 at release and went down to $199 with the first price cut, but that was 18 months after release.

On the other hand, they really need to drop the price ASAP, because as it is right now I bet developers are canceling games for the PS3 when they see that neither the games nor the console sells. And a game drought will just make the downward spiral worse and the console will never be able to recover. 

A Bloomberg market analyst said that a drop to $500 won't cut it (don't remember the guy's name), it would just marginally increase sales. I sort of feel the same way. I can already see people say "nah, $500 is still a lotta cash for a game console...it's not even new and hot...  I'll wait". 

Sony has to be brave and drop it by $150 or $200, and I believe they will cuz I predict that Microsoft will drop the price of the X360 soon. So Sony simply will be forced to drop it, even if they lose even more money. Or else they will have to start developing the PS4.

Prediction: If Sony dropped the price of the console by 599 dollars, they would own 99 percent of the console market within 1 year.

More realistically, anyone saying that Sony should drop the price of the Playstation 3 by large amounts simply isn't looking at the big picture. I'm constantly amazed that it's the PS3 fanboys that seem so gung-ho about this proposition, because a price drop stands to cost their favorite company hundreds of millions -- if not billions -- of dollars. It's as if they think that nothing else matters. As long as the PS3 stays on top, the entire rest of the Sony media conglomerate could be thrown to the wind.  

That's not how huge corporations work, and any price drop is not going to be made to "save the PS3" -- it's going to be made because they feel they can make more money in the long run by selling the system at a new, lower price. For example, a 100 dollar price drop has been reported by Sony to cost upwards of one billion dollars; that money would have to be made back via software/peripheral sales, and that's a very tall order. Sounds impossible to me, but if anyone can show me math to suggest otherwise, I'll listen. 

Well the article that you linked is actually true, the ps1 started of with bad sales and it was priced at 200buks, the ps2 was selling bad at the beginning at it was priced at 300buks, aybe the ps3 will win this console war in sales after all the games are coming and if sony dropis it to $449.99 and release a 80gb $549.99 I think that would be smart, now that some sony blu-ray players cozt 300 buks.

 thats probably in the planning stages lol.

 anyways, the PS3 from my calculations by the end of the year should easily be able to be dropped 150 - 180 dollars. 200 is plausible but instantly doubtful. 

Yeah the loss was estimated at $241 at LAUNCH. And that was an estimate... It was probably more like $200 loss. By now, they've got everything squared away, and they removed PS2 emotion engine, and probably other things, and Blu-ray diodes are cheaper, plus the other components are constantly dropping in price (Buy a state of the art PC right now for $2000, and next year it will cost $1000)....

So I estimate by christmas, the $600 PS3 will be at about break-even. Which means they could drop the price by $100 or $150.

Desperate times call for desperate measures, I have a feeling this holiday season will decide the PS3's future in the eyes of Sony's CEOs and its investors.

If it was a "failure" then why is sony investing even more money in the system to begin with?  Blu-ray players have dropped since last year by 500 dollars so they can drop the price of the ps3 at any time, Some standard blu-ray players already cost $499.99 made by sony. A blu-ray player is the only thing making the ps3 cost this much, Sony migth actually be gaing money in ps3 sales since the march fiscal year. I think by this holiday season sony's console (60gb) will cost anywhere from $599.99-$449.99, thats what I expect my prediction.

I suspect they will rather release some nice bundle deals - $599 for a 60Gig PS3 + 2 (selected) games.

In Australia, PS3's have already come down about $50 (to $950AU), and if you buy a game - you get another (one of Sony's selected titles) for free.