BBC are doing a survey asking whether you would rather have  a PS3 price reduction or free games and controller.

So far about 28,000 votes have been cast.

I'll let you click on the link to see how the voting is going.

http://news.bbc.co.uk/1/hi/technology/default.stm

30 000 votes,

80 % for price drop ...

BUT, there is a little error,

because what Sony puts in his bundle is not freegames,

it is RoM and Motorstorm,

Just make a bundle+controller+2 free games that U CAN CHOOSE and things wil be different.

This is kind of funny. I would say that it depends on if you want the games in the bundle or not. However, I only own Motorstorm and Resistance (my only blu-ray games, I have other stuff from DLC) so for the exact same price as just the console alone, that bundle would have been perfect.

*edit* By the way, WHAT'S UP WITH ALL THE CAPS IN THE TITLE? 

The intersting thing is that it's already had an unofficial price drop. You're hard pushed to find a PS3 unit on its own for sale at the full £425. Most places offer a free game already at that price, or £400 for the unit on its own.

Maybe the new bundle will allow retailers to put the price back to £425, it's usually £460 for 2 games, not seen any with 2 games and 2 controllers though.

@Shambolic, I agree, they're basically at £400 anyway, maybe Sony just wants us to think they aren't dropping the price, their just doing it stealthily :P

It's obvious that this bundling of free games is a price-cut lite....but eventually anyway Sony is going to have to include rumble-capable controllers, as well as a headset for its online gaming and Home, with the purchase of every PS3 in order to give its gamers all of the tools needed to run these applications without forcing PS3 users to go out and figure out which equipment is the right stuff to get and how to work it.

Unfortunately, quasi-price drops don't work as well as true drops.

Most consumers prefer a cheaper system as opposed to throwing in a game, because the average consumer feels that it's more worthwhile to pay less for the system, and then choose what they want, rather than be told by someone else what to get.

Now, some systems (namely Nintendo systems) don't follow this trend. In the US, most major Nintendo systems have been bundled with a game (Super Mario Bros/Duck Hunt, Wii Sports, ect), and it's worked. However, they did this from the get-go, rather than just throw it in at some point.

Also, what worked more for Sony. The fact that the model went to $500 instead of $600, or the fact it was a better buy? Most consumers only know of the $600 model. So getting it for $500 is a deal, thus the increased sales.

Cheaper system is the best IMO. You can find a lot of good games (used) for less than 10 dollars in Gamestop or Ebay.

Used PS3 games for less than $10?

you can get these games for far less than 60$, and it's easy for Sony to bundle some games that have already sold 90% of their lifetime sales.