A $200 price drop by Sony would lead to 3 things

No PS4 due to Sony cancelling games division
Wii drops to $200 and still outsells PS360
360 price drop or live price drop and sales decrease slightly

 1. Thats true, they're losing too much as it is

2. Hahaha PS3 price = wii price and you actually think the wii would outsell  PS3???! your jokes brought laughter to a childs heart

3. Maybe

the wii outsells the 360, with the 360 being cheaper. While the 360 from an objective standpoint is the greater value.

The thing is features+value =/= to sales
Public perception of product+trendyness = sales

The wii is the videogame equivalent of the iPod. There are better MP3 players out there for cheaper, the public still eats the iPod up. Regardless of what the other systems are priced as, and regardless of what they can do the public views the wii as the system to own.

$200 price drop would cause ps3 sales to go crazy then sony will run out of money

Wow, coolestguy! You loves you some Playstation 3, huh?

If PS3 was 199 it would sell like crazy and drive sales of games and BR DVD as well as HDTVs and then eventually drive up sales of home theater systems as well.... In the long run Sony could probably even end up being profitable from it as whole in the year 2050.

If you look at the world charts, once the ps3 got its price cut a while back it started selling an extra 70k per week on average, that was for a 100$ price drop but also a drop in BC. Maybe if they kept BC it would be 5-10k more.

If Sony now had a 200$ price cut, there are several factors to take into consideration.
1) at the rate of the previous price drop, the ps3 would sell maybe an extra 140-160k

2) The price point would be under the wii, which would take customers from both the other consoles, which it isn't doing right now. Sometimes people go in, look at a couple things for their price range and then decide. A lot of people are walking into stores going, "I have 400$ what do I buy? Do I buy the Wii with 4 games, 360 with 6 games, or ps3 with a blu ray movie?"
So, whatever that price point may be.....
example: 360 costs less than the wii, and sales spiked. lets take half those sales into the equation. 40k extra

3) all the dedicated ps2 fans who want an upgrade that were holding off because of the price, we will say maybe 10-15k a week extra.

In summarization, PS3 would be selling an EXTRA 200k units a week. possibly more. roughly 350k units a week is what i'm forecasting.

at 350k consoles moving a week, if everyone bought two games right away and one BR movie, and one in a hundred bought a bravia, one in two hundred bought a sony surround sound.
sony would be losing about 250$ per console (i think those are the correct numbers)
making 45$net on the two games maybe 5$ on the BR movie so that lowers the loss to: 215 loss per console.
Now sony would make 300$ for every bravia. at one in 100 they would stand to make 1m, for the surround sound maybe 70k$ so 1.07m profit.
the loss on the consoles would be about 35Million dollars in loss - 1m profit.
they would lose 34m per month. which depending on how you look at it, might actually be something sony might want to do in the future. a 50$ price drop might even out immediately.

Have you looked at the charts recently? I'm guessing not.

The Wii usually does this: Up, down, up, down, up down, with spikes every other week. exactly at the time wii was supposed to spike after a down it went down again. This was the week that 360 cut price. ps3 also lost sales.

Now, the next week wii should have spiked again. it didn't, and then fell again. Yes it was very slight but it is in competition.

You nintendo guys seem to think that price point means nothing.

PS3 would outsell 360, but not Wii. Here would most likely be the sales in relation to Wii:

360 20-25%
Ps3 75%
Wii 100%