A big boss from Capcom saied this ...

SANTA MONICA, Calif., July 11 (Reuters) - Sony Corp (6758.T: Quote, Profile, Research) is likely to lower the PlayStation 3 price again by the year-end following this week's $100 cut, a senior executive at Japanese game software maker Capcom Co. Ltd. (9697.T: Quote, Profile, Research) said. "The number of PS2 users is still growing and a shift to the PS3 is on the back burner," Capcom Chief Financial Officer Kazuhiko Abe told Reuters in an interview on Wednesday.

"But, the price has been cut once and it is likely to be cut again towards the end of the year. I expect the (PS3's) installed base to grow gradually."

Sony on Monday cut the price of the PS3 to $500 in the United States in a move to breathe life into sluggish demand.

The new price is still $20 more than the most expensive version of Microsoft Corp.'s (MSFT.O: Quote, Profile, Research) Xbox 360 and twice as much as that of Nintendo Co. Ltd.'s (7974.OS: Quote, Profile, Research) Wii.

Abe, visiting Santa Monica for the E3 video game exposition, also said sales of its action horror title "Resident Evil 4" for the Wii will likely exceed its target of 420,000 units for the current business year to March 2008.

((Reporting by Kiyoshi Takenaka, editing by David Holmes; Reuters Messaging: kiyoshi.takenaka.reuters.com@reuters.net; +81-90-2418-8760; kiyoshi.takenaka@reuters.com)) Keywords: GAMESEXPO CAPCOM/

http://uk.reuters.com/article/consumerproducts-SP/idUKN1229896920070712?rpc=401&feedType=RSS

Sony needs to inorder to survive the theart of Halo 3, Super Smash Brawl, and Super Mario Galaxy. Sony haves great new IPs(Uncharted) and original franchies(Ratchet) but they need to market the games and the system very good so it can stand a chance this holiday season

Sony's wallet is deep, but not Microsoft deep. It has limits.

Just consider that according to this thread:

http://www.vgchartz.com/forum/thread.php?id=4033&start=100#end

Sony has sold around 2000 PS3s on Amazon alone in the last 3 day rush. If we can assume that they didn't actually intend to lower the price this quickly when the system launched (a safe bet, I'm sure they didn't expect sales to be this dismal), that's 200,000 dollars lost, just on Amazon, just in the last 3 days, just in the United States.

Now extrapolate that over weeks, over months, over hundreds of stores, over continents, and then tack another price drop on there. I'm not saying it's impossible... but again, Sony is a lot closer to Nintendo in terms of financial flexibility than they are Microsoft. They can afford to take a multi-billion dollar risk, and even another billion dollar risk on top of that, and perhaps another one on top of that... but it quickly starts to look much too risky. The shareholders will NOT be happy, and yearly projections will be significantly off. 

Halo3 will outsell Heavenly Sword, Uncharted, and Warhawk combined. That is my official prediction for you. I don't care about Halo at all, nor have I ever owned an Xbox360, but I can say with some confidence that you seriously underestimate this game. Just because you or I personally don't care for it doesn't mean it isn't a big deal. 

Well said. I think this price cut was probably a hard decision in itself, the last thing Sony wants to hear about now is another price cut...

The only thing that might save them in 2007 is that the 360 is probably not getting its price cut until after Halo 3...

to NJ5:

I aggry this is a strange decision, but I just posted the link with interrogative point (? in the title)
I never saied it was suppose what will happen.
And even more we dont know how many money they succeed to save on NEW PS3 unit production so another price drop just before Xmas is still possible.
But I aggry it is hard to belive.

To Bodhesatva,

It is not about me or you, it is about the fact that Halo is an Xbox fan targeted game (the only one that played Halo1 and 2, except PC player that just get bad port) that should not considerably improve Xbox30 sales.
I never claimed it will not sell a lot, I just think it is not an amazing release since we know since 2 years that Halo3 will come on Xbox360.
And the comparaison with Heavenly+Warhawk+Unchartred if useless since there is still 3 Xbox360 owners for 1 PS3 owners.
Yes it will sell but I m not sure it is a system seller.

Agreed. Notice I wasn't attacking you, just the idea expressed in the article.

 I'm going to say this as kindly as I can: I think you're nuts.  Are you seriously trying to argue that Halo 3, because it will be coming out as an Xbox 360 exclusive (until the inevitable PC version comes out), will not sell games and boost console sales?  I agree with Bodhesatva that you are completely underestimating this game.

theyd be better off bundling a game like Ratchet and Clank than dropping the price again, imo. Get a great game onto the system for people to share with friends and family make it an all in one out of the box playable package with a game and a BD movie even and it would have a better effext than another price drp for holidays, imo.