Nintendo has shown that the typical "sell the console at a loss" is not the way to make the most money. As such, I think its time that Sony change their tune and not drop the price. They will never catch the Wii in sales. They will always be at least $200 more and people are cheap. They will struggle to catch the 360 in sales because the 360 is essentially the PS2 now. They have more games, better online and PS3 will always cost at least as much as the 360. As such, the PS3 should focus on making money on their console. Will they lose exclusives, yes. Will they get 360 ports, yes. However, they'll still get some amazing exclusives (FF, MG), they have an internal development team that is bigger than Nintendos to keep an even supply of games coming. I think they need to realize that they are the GameCube this generation. But that's not a bad thing the GameCube made a ton of money. They just need to not panic and drop their price like mad. Not only will that cause billions in losses, but it will also hurt brand recognition and customer confidence. Not withstanding the fact that its going to be a band aid on their problems (lost exclusives, development shift to wii/360).