Worldwide 100 dollar price drop on the ps3 would mean big sales, not WW would mean slight increase in sales. Big titles coming out through the ps network next week.

 try about $75

leo-j: very good. and 2 + 2 = ? 

 Correction: 2 sure fire megatons. GTA IV... never forget :P

Yes, I was talking about Halo 3, specifically, and it will outdo GTAIV on the PS3. Not sure about GTAIV combined 360+PS3. Halo is a guaranteed smash hit; probably will sell in the vicinity of two to three million copies before October hits. Then, October is complemented by GTAIV. And then the holiday season begins in November with a slew of titles, some which cater to casuals more (GHIII), not to mention a big JRPG for Japan.

So, the PS3 needs to close the gap in NA VERY quickly. We'll get an idea of the impact the sales have for the later half of July and all of August when the PS3 gets it's AAA title Lair. But, something tells me the momentum Microsoft will build for Halo 3 could be unconquerable for Sony. Name one Sony game that will outsell Halo 3 this year .................. if you can.

Edit: ckmlb, GTAIV is definitely a megaton, but the original post was referencing August and September, so I didn't mention the GTAIV bomb.

$500 will help the PS3 but being that the XBox 360 (and possibly the Wii) will receive price cuts in response to this it will not dramatically change how any of the systems will be selling ...

I don't know, I have a sneaky suspicion that due to recent 360 news (extended warranties) and the Wii sales rate, we won't be seeing any other price changes soon. Expect MS to lower when/if the PS3 sales start to climb for an overtake.

I don't think the market for a $500 video game system is all that much bigger than the market for a $600 video game system. It should increase sales I would think but not enough to really make a difference.

The bigger question is whether MS reacts. I have no clue what they will do but seeing as they're paying $1.15 billion to fix all the broken 360's out there it's going to be hard to lower the price unless they are simply giving up all hope of ever making a profit on the xbox venture.

Before people continue to misquote, the 1 billion to 1.15 billion dollar loss is an estimate. It doesn't mean that when they announced an extended warranty that they suddenly lost 1 billion dollars. That's what they expect their losses to be. It's possible it won't cost them that much, or could even cost them more.

Just wanted to point that out.

 You need to listen to yourself. There won't be a pricecut that's already the cheapest console and is selling out everywhere. It's pointless to cut the price for Nintendo now, it's like leaving money on the table....

While your pointing that out, they are sure to write it off as a loss (which they can report at any time or spread it through the year...)