THIS ^^^^^^^^^^^^^

By "we" you must mean that super secret PS3 defense force you're part of.  What, do you have 100 shares of Sony or something?  And do you honestly think the PS3 is going to kill off the 360 at this point?  It's far too late for the 360 to suffer the fate of the Dreamcast.  Even if it comes in third, it will have taken significant market share away from Sony.

Sony is what we call a "publicly owned corporation".  Public corporations have things called "shareholders" that they have to report to.  Shareholders do not like to see products being sold at a massive loss.  Sony is still losing a lot of money on the PS3.  They have also announced several times that there is definitely not going to be a price cut this year. MS on the other hand is continually lowering production costs with hardware revisions, therefore they are still able to make their money per console sold.  And yes, they are now officially making a profit per console.

And you're right, the economy in its current state is NOT going to support $400 consoles.  People who buy consoles during the holidays are usually parents buying them for their kids.  Parents are worrying about their mortgages and the price of gas right now, not buying a $400 console for their kids.  (but that $199 console a row over might look a lot better to them, if they even buy a console at all.)  The PS3 is not going to win the holiday season this year.

unfortunatly for you sony is in this to make money in the end, and this would kill them. i think a reason sony will not be dropping the price has more to do with they are still losing money on the hardware itself (on top of investor promise), but has looked forward and see that if software for the quarter sells well it can offset that lose and even turn a profit if no price drop is put in, and they keep bundles limited. they need to do this to keep shareholders happy, and beating the moddest goal of 10 mil for the year with say 13 mil sold, can argue a win and raise share prices while then dropping the price next year around mach 100 dollars sell it at a small loss or break even and push software, I doubt ms would respond even if it meand losing ground, because they will make cuts in the august area, and probably only 50 dollars if its a 100 dollar drop, the arcade will be discontinued in favor of all units sporting hds, or a slim redesign. (though i feel a slim redesign in spring 2010 makes more sense)

but if you read around, if the wii had bombed N would only be a handheld maker right now, i feel that would have been sonys place to with 2 failures, also the psp2 would need to move softeware and hardware, or sony gone all the way

there is just not enough president to say this, also this fallows where the ps2 was in its order of price drops from launch, and where the ps3 should be next year, thats the main diference a year on market, i would be worried if the ps3 was here already with the year less on the market and the higher entry cost, but the 360 no, it where its supposed to be. it is interesting to see price deveation this gen, as uposed to everyone matching sony to keep sales up like last

Man the Race isn't over yet this wont be the last christmas either just imagine what would happen if sony gave the ps3 a $100 price cut remember PS2 at $299.

sadly for your nestalga, the ps3 is not the ps2, and there are far more similarities of the 360 to the ps2 in terms of history of console with price, launch, its hardware place, early problemes with the hardware (disc read error), setting the price drop pace. very interesting... i think sony got too worried about the 360 and launched too early they should have waited another year or two and launched this year, price pint could have been lower killer games at launch and 2 more years of making money off the ps2, also the ps3 could claim it was the next next gen, and skipped claims to the 360s gen made it look like a paniced rushed product, where they hurt themselves with higbh price constantly removing features and taking huge loses with unanticipated price cuts needed to stir demand. really a botched plan

na,,,you are worng man ,,,when PS2 was 199 (like 360 is now) it had a user base of around 80 million users,,,but 360 has a user base of 21 million  at the same price point($199).

big difference don't you think?          80 million users  $199 PS2  Vs. 21million users $199 360

i was talking about progresion of the unit in terms of time from launch not sales, clearly i did not make that clear enough

Good news, they going to announce it during TGS next week. Effective immediately. In my dreams hahah. or is it?!

I need to buy my third PS3 so I really do hope they lower the price down.