This financial crisis won't blow over in a few months. Everything is connected and the effects will last for a very long time. Expect a lot of job cuts and bankrupt companies, and governments/companies with cash in their coffers to buy them.

http://www.edge-online.com/news/hirai-game-industry-and-global-financial-woes

October 13, 2008

However, confirming a previously stated position, Hirai says there will be no PS3 price cuts this year.He said, “The answer is yes, if you’re asking, ‘Are these the prices we’re going with this Christmas?".

The problem is a bit more complicated, than you think. The PS-2 was more or less in parts an embedded system, that you had to use. This was its disadvantage. But once the programmers understood the concepts they were able to use this system as it was intended. On the other hand you can work with the PS-3 without any special care for the SPUs.

While the basic architecture of the PS-2 and the Xbox was too different to really reuse the same code-base on multiple plattforms, the differences between the PC the Xbox 360 and the PS-3 are not so deep. Furthermore: all of this plattforms work with HD graphics. If yozu have these graphics for one plattform you can modify the system cheaply and reuse these resources.

But while the differences between Little Endian and Big Endian architectures can be handled by the compiler in most of the cases, the SPUs can't use and access the same librabries as the PPU or each of the different cores in the Xbox 360 or the PC. Instead you have to dive much more into the architecture of the SPU, but while you have a very detailed access to the SPU, you have no such control about the interprocess communication inside the Cell itself and the rest of the memory systems, instead they are optimised for data throughput, not for time or priority. The Cell was not developed for real time applications with priority issues. If you have a SPU with critical results these results can be delayed by less important results!

Furthermore: The Cell was a complete new architecture. Without such a daring move the processor would have been cheaper as well as the design and construction of the complete  PS-3.

i agree but look a this

http://www.gamesindustry.biz/articles/sony-no-ps3-price-cut-this-year.

Screwed? Right now they are doing better WW than last year in the same period, while, always WW, XB360 with price cut and more reliable HW is doing worse than last year after Halo 3 launch but still heavy RRoD problem:

http://vgchartz.com/hwcomps.php?cons1=Wii&reg1=All&cons2=PS3&reg2=All&cons3=X360&reg3=All&start=39341&end=39726

I dont know if you seem to understand the point of this thread. This year is completely different due to the fact of people everywhere being less able to get credit. Hence the higher the price of a present the more likely it wont be bought. My point in the OP was the 360 and Wii will very much likely have bigger increases the closer we get to Christmas than the PS3. People who are single or dont have children may still be able to afford the PS3 no problem. But as for families who have a car a house and 2 or more children. I can bet my bottom dollar they wont look at one twice. It's to risky to spend that amount during the crunch and still have to spend the same on your other child. Then the family and your partner.

If you dont think this will affect people your in for a massive shock over the next 3 months. People buy on credit at christmas and credit is tied so tight right now and is reported to get worse not better.

PS3 is still cheaper than the 360. I do not know a 360 owner that hasn't spent more on hardware than I have with my PS3. $499. I know 360 owners that have spent $800.
Battery Pack
20GB HDD
Charger
XBox Live
WiFi
Cooler Fans

All PS3 owners I know have kept there hardware budget under $600. For hardware I'm at just $553. $499 for the console and $54 for the extra controller and I get more with that than my cousins who bought a 360.

 Wow you have some really stupid friends, and also miss the point again. A ten year old kid who wants to play Fifa o9 is not gonna care about an HDD, or wifi, or cooler fans (jasper model is this christmas dont start with that crap).

Also 360 60 gb model with free 6 month live £169.99 with game. Charger £12.99. Total = £181.99

PS3 cheapest model = £300 with game. 

£120 spare to buy other presents or more games. You see. Without credit it's easier for Parents. And if they get arcade for there 8-12 year old kid who couldnt care less about HDD then the parent saves even more while he is happy playing Fifa 09 over christmas and the parents are happy cause they saved £170 with arcade. You see this matters during no credit time.

Hope they don't. I just bought one.

Well a used one with BC so maybe that wouldn't of effected the price much. But still.

Ah who am i kidding i'm not that much of a grinch.

Sorry man, hate to burst your "refute bubble" but I don't have any 10 year old friends in the U.K. that own 360s.  If you were somehow trying to attack my comments with an argument, please try again.

So I stand uncorrected...every 360 I know has spent way more on hardware/accessories than people I know with PS3s.

End of argument, nice try though selnor. 

Oh forgot to add that after paying less on hardware than 360 owners I know, I still get a free step into HD movies, BD at no extra cost.  That's value.