A price cut at this point in time wouldn't be the best of ideas. I doubt we will see one.

The PS3's price will drop to $299/299EUR this fall. Guaranteed. That's how the market works for consoles -- you drop the price each year, pump up the volume, then make money on the software. Sony's roadmap looks like this:

November 2006: $499 (high-end price)
November 2007: $399 (medium-end price)
November 2008: $299 (true mass market price)

By November 2009, the PS3 will drop to $199 -- just in time to be marketed to 1.5 billion cash-flush, media-hungry consumers in China, India, Russia and Brazil.

i don't think it matters that much. If microsoft cuts the price Sony will probably stay the same price and they can afford to do that because even though Microsoft may outsell it in america they will at best only be the same worldwide. I don't think Sony must make a price cut at that time. The price cut for Sony will come eventually and it can take some momentum back later.

people who are talking about lowering production costs

You do know Sony is switching to smaller RSX and Cell this fall right?

And you do know Sony is giving away Ps3's in Australia again... If they were so worried about Profit why would they do that?

If you look at the price history of most consoles, they tend to average moderate to large price drops ($50 to $100) every 18 months or small price drops ($20) on a yearly basis. As an example, the first price reduction for the PS2 in North America was $100 (roughly) 18 months after it was released, it then dropped $20 a year later and an additional $30 a year after that. Over the past 4 years the PS2 has fallen from $149 to $119 which is hardly a rapid price reduction.

GameCube on Launch: 199$
PS2 during that time: 299$

GameCube pricecut: 149$
PS2 during that time: 199$

p.s. i hope PS3 will have s pricecut ths summer to 349$ and later in Christmas 299$.
Anyway, any pricecut of PS3 is welcome. :)

I think Sony could make a regional price cut instead of a WW price cut. this would make loss minimal and it will help keep them in pace (if not better) than 360.

But which region? NA where they are the weakest compared to the compitition. Japan where they really need more sales. or Others where they are the strongest and can increase the lead.

ur in big trouble SONY big trouble.

Components prices drop and in autumn there will be new price lists for them. We don't know how much they will drop, anyway, so we still don't know if and when Sony will be able to do a price cut worth the effort, as a cut too measly would only affect revenues without sales boost benefit, so IMVHO Sony will reduce prices only when it can afford a $50 or more cut. They must be crossing their fingers to be able to do it before Xmas, it'd make them perform very nicely.