I'm not saying you said the same as him, but similar content. Announcing MGS4 or FFXIII for other consoles before those games launch would be stupid, as it would decrease their sales. So yes, for now, those games are exclusive to the PS3. But you did see these news, right? :

http://www.gamesindustry.biz/content_page.php?aid=26543

http://www.gamesindustry.biz/content_page.php?aid=26587

Sony needs to either write a fat check to those companies, or make the PS3 sell well soon, or else...

Yeah, It's not positive news for Sony. But if I was a developer and I had exclusives(for now) coming out on the PS3, I would want them to get a lot more hardware out there as well. Judging by the conferences the last couple of days, I think Sony has a lot of good looking First/Second party exclusives coming out that can tide them over just fine until the sales pick up. It may very well be that in a couple of years we look back and say "Jesus, what was Sony thinking", but as of now I just don't think they are in as much trouble as a lot of people do.

The reason that people were hesitant to buy the 20GB is cause they felt they were not getting everything from a PS3, and they wanted the Wi-fi, more space etc. but could not afford the $600. Now with the 60GB at $500 they can get all the room they need, and get 6 blu-rays and a remote free (from Amazon) then have money left to pick up a game.

lol is it really necessary to quote all those posts? =)

To me at least this thread makes a simple point that is pretty much a fact as far as I can tell. And that point is this ...

Fact: People who want to play the PS3 but are dissuaded due to the $500 market entry barrier are still confronted with the same barrier.

Now the questions that come to mind for me when I think about that are as follows.

1) How many people were held back by the $500 barrier?
2) How many will decide that they don't want to wait any longer?
3) How many people will be disgusted/disappointed by the lack of change to that barrier and decide to go with another purchase (whatever that purchase may be).

The answers to those questions can be used to extrapolate the rest of the topics discussed thus far such as "How will this impact the sales numbers?" etc...

For me at least, my answers look like this....

1) Quite a few people are not convinced that $500 is where they want to get in on the PS3, I feel this is in large part due to a fairly low % install base of HD TV's and the prevalent feeling that without an HD TV the purchase is essentially wasted (a feeling I concur with).
2) I think there is a respectable number people who thought they would be able to get a price break by waiting but are now figuring out that the price break they wanted is not here and they do not want to wait another year or however long it will take.
3) I think this is probably the smallest of the groups, as I feel the interest in the PS3 is considerably more hardcore than just some random piece of tech. There will definitely be some people who are fed up with Sony's antics and decide to move on to greener pastures if not for this generation then at least for the next year while they wait for the price break they are determined to get.

Ultimately I think this will mean a surge in sales for around 3 to 4 weeks and a leveling off at around a 15-25% increase of the previous weekly sales numbers (15-25% as a global average increase).

True it wasn't a "price drop" as much as value increase but that means different things to different people. To people like us who understand what is going on, what the previous values were, what the new values are it is indeed a price cut.

Sony's problem is that "real gamer" fantasies aside, the vast majority of consoles are sold to people who do not understand the differences in value. Most of these people will go into a store, see 80GB $600/60GB $500 and it will look exactly the same as 60GB $600/20GB $500. The reason is simple, $600/$500 is the only difference most people understand. To them the PS3 you want to buy is still $600, nothing has changed.

Sony would probably  have been better off slashing the 60GB to $400 to clear out inventory and selling the 80GB at $500. That would require a major profit hit though, apparently too big of one.

I agree with your sentiment Albionus but I fear that if sony had made the price cuts you allude to in your last paragraph it may of been read by consumers as desperation. An accompanying corporate spin could fix that sort of thing of course...

ie..."Sony is proud to announce today that with the help of our manufacturing partners and R&D teams we have managed to significantly cut the production cost of the Playstation 3. As a result we have raced to put together the details with our retail partners and are proud to announce the following major price reductions.... ...Sony is committed to making the Ferrari of the console gaming world available to the everyman, and we feel that today we have taken a large step toward that goal."

The investors would kick their ass.

Yeah It wasnt really a price drop if they are introducing a new model. Sony should stick to one SKU being the 60GB and not released the 80GB at all because consumer would see both and think they still didnt lower the price

@NJ5 

Not necessarily. I think Sony's plan from day one was to win the format war as a primary objective and become profitable as a console as a secondary objective. Granted they have been focused on both the whole time but I think that is their primary motivation at the moment. They stand to make significant profits from Blu-Ray. And if they can get the hype about PS3 going again and get sales jump-started then it would be worth a short-term hit to a company that is obviously capable of thinking in the long term.

That sad, I doubt the reaction from shareholders would be all smiles.

Yeah good point Sqrl. Sony has really painted itself into a corner here. It's ok though because they have a 10 year plan and the PS3 is "future proof" (probably the single most idiotic thing I've ever heard a company say about their console).