It will be interesting to see how this affects PS3 sales in the future. Should it indeed happen it would definitly prove my claims misguided in saying that there could never be a price cut this early.

Edit:

Ironically I didn't even catch this post before I responded. Oh well. On the matter though has anything good ever came out of a, "In b4 GBaLLZ4ck...", comment? Seems kind of flame baitish to me but I'm sure I'm the last one anyone wants to hear that kind of talk out of.

I hope the same mostly because I want a cheaper machine, but why would nintendo do that?

If MS responds to a Sony price cut with their own price cut, the 360 core will be available for the same price or cheaper than the current Wii price, so the Wii would lose one of its biggest advantages.  Of course, since Nintendo is profiting on the machine, they can afford to cut their price much more easily than the other two.

About the 20G PS3, it missed one thing, that should be considered important at early stage: Wi-Fi. Of course you could connect to internet through wire, but you couldn't connect it to PSP.
Plus it hadn't memorycard reader and it had 40G less storage (was there any other diffencies?).

MS may decide to drop the 360 price if this happens to be true to try to keep the price advantage over Sony. However, I read on CNN.com today how MS lost more then $1B dollars due to 360 repairs in the quarter ending in June. MS also announced that they were extending the warranty to 3 years as well.

http://money.cnn.com/2007/07/05/technology/microsoft_charge.reut/index.htm?postversion=2007070518

With that news, it may be less likely of a quick price cut by MS since they have bled alot from repairs and if they haven't fixed the issue with the ring of death, it will just continue to increase losses from warranty repairs/replacements.

 Well yes if that means that they lose sales otherwise I don't see why they would care.

Clearly Sony has to get their price cut in first. If MS announces a price cut first, they get all the attention for it, and any price cut Sony makes afterward would get ignored as just a "me-too" reaction. Sony probably intentionally allowed this to leak a week early just so they could beat MS to the punch, since MS's E3 press conference is first this year.

My biggest gripe with the PS3 is the fact that the games I want wont be out till 2009... even a $100 price cut wont matter with the current library of games. Now if the 360 gets a $100 price drop that may raise an eyebrow or two... well maybe not until they iron out all the reliability issues. Id hate to go through what my friends went through with thier 360s. But ya the $100 price drop is nice but I think the biggest issue is lack of games. Sony's 1st party games just arent good imho.

It looks like some stores have dropped the price early... http://www.ps3fanboy.com/2007/07/06/ps3-sold-at-target-for-499-99/

When people bring up the 20GB model was $500 that's really a bunk arguement. For one Sony didn't ever produce the damn thing, it was no where to be seem. Most major retailers didn't even sell it. Second, it's only natural that the people who buy console early are going to want the premium version. I mean the 360 core still sells like absolute crap. Does that mean the 360 isn't going to get any boost from a $100 price cut.