RE5 will also be on 360 if not the Wii as well.

Not with the current line up of games (and the ones coming) possibly if they announce something interesting (to me) at E3, but probably not still

Nope

People who will...

People who were buying it at the $600 price...
and
people who were waiting for the much anticipated price cut will not need to wait any longer.

I predict a steep decline for this and next week as waiting a little while will save $100. For those that waiting isn't worth $100, they already have one...

Then increased sales for about 2 months, dropping back close to these levels... followed soon after with increased sales for the holiday season...

I think the effects of a $100 price cut will be underwhelming. Some people may be waiting for a price cut, but I don't think there are a ton of people out there just waiting for an opportunity to spend $500 rather than $600 on a PS3. I would expect a two-week sales spike, followed by a return to sales being almost as slow as they have been for the last few months.

Well, I wanted to play some "next-gen" games and couldn't freaking wait any longer so I bought a 360 a couple of months or so ago. I wasn't happy about paying 400 for a console since my pain point is 299. That said, I now have a next-gen and there aren't (yet?) enough exclusives on the 360 to justify the price. At 499 I'm still not interested and I don't think the 100 dollar price point will increase sales much -- maybe 10-20% of the current monthly totals.

If anything I think it may sell more Xbox 360s and Wiis as people might realize this is all they are going to see in terms of a price cut this year. That assumes, of course, that Microsoft follows suit and drops AT LEAST $50 bucks on the premium and takes the Elite to $399...

The price is more reasonable now, but I am not paying 500$ for a console. I am waiting until it drops into 200-300$ price range, it is going to take a while but by that time there are going to be many good games so it will be great.

I agree.  I reckon it will sell well for a few weeks...maybe even a month, but it will eventually go back to similar sales figures as before...although maybe slightly higher...but not by much.  But I do think they will get better sales at Xmas than they would have had they retained the $599 tag.

Xmas is going to be a big deal for the PS3....it will either do well or it will do reasonably...and this again will decide whether we saee another pricedrop in 2008. 

What if someone made up the 100 dollar price drop and it won't get a price drop at all? How anti-climatic would that be ...

If Team Ico announced their game and showed some footage at E3, 500 would sound more tempting to me. Other than that, no.

$400 and we'll talk. $300 and I'll strongly consider it. $500? No way.