Below is an official response from Sony.

I personally tend to believe the official response. It's not like I am buying blindly anything that Sony says but knowing how these things work, it makes no sense to me that at this point in time Sony people would discuss or even know the timing and extent of any price cut. There is just too much missing data for them to be able to be so precise at this point.

Just consider the following: in order for Sony to plan their price cut strategy they must know first the holiday sales numbers, the remaining channel inventory for March, an updated figures on currency exchange rates and the latest production cost reduction figures. None of these would be available today, and without these figures they cannot make a price cut decision. Not to mention the inconceivable senselessness of discussing it in a broad leakable forum ahead of the holiday sales. The whole rumor just does not add up to be anything credible. But here is from the horse mouth:

http://www.edge-online.com/news/sony-no-plans-march-ps3-price-cut

Sony: "No Plans" for March PS3 Price Cut

Sony's PS3 pricing strategy has been one of the biggest industry question marks in recent months, and on an official level, price cut plans will remain under wraps.

Responding to new rumors of a PS3 price cut in March 2009, a Sony Computer Entertainment America rep told Edge, "There are no plans for a price reduction on PS3 in March 09, and anything reported on or discussed otherwise is purely rumor or speculation."

Over the weekend, online magazine D+Pad cited an anonymous source who purportedly attended a Sony staff briefing in London where execs said the PS3 will have a more competitive price from March 2009 and beyond.

March 31, 2009 marks the end of Sony's fiscal year, during which the company expects to sell 10 million PS3 units, or about flat compared to the previous year.

Sony has repeatedly denied a PS3 price cut will take place before the holidays.

Currently, Xbox 360s retail from $199 to $399 and Wiis sell for $249 in the U.S. Standard 80GB PS3s sell for $399.

SCEA sales VP Ian Jackson recently told analysts at the BMO Capital Markets Interactive Entertainment Conference, "There is no product in the industry today on the videogame console market that delivers what a PlayStation 3 delivers for under $400, in the case of the 80GB."

Price cut in March confirmed then.

          ^^ XD....this! 

          Of course Sony will deny a price cut during the big holiday season 4 months prior to a rumored cut.  Sony needs to sell consoles, not have people holding out for a cheaper price until early next year.

Reeves having to cover his tracks this morning says it all, heh. Second post is right on the money.

Careful here.

The standard response from a company is "we do not comment on rumors and speculations".

Here Sony went much stronger. They outflat denied it. If they are lying, it will come back to haunt them and kill their enterprise credibility. They know it and they are very careful with what they say. So if they denied it, you should assume they have a good reason to believe that what they said is true and they will not be caught lying.

I think the original rumour was just taken out of context. I think it's more likely they meant the PS3 will be more aggresively priced after March because it's the end of the fiscal year.

They are saying no, well.... big surprise here falks :S.....

 You're new so I'll give you the benefit of the doubt... lying is nothing new to companies. no this wont hurt their credibility. no people wont remember they denied it 5 months from now.

They are trying hide the fact that their is going to be a price cut. It's obvious because of the comment regarding them having a more competitive price.

See this how it works, if you tell people that a price cut is coming, then they wait.

This holiday Sony needs to move PS3's and the last thing they need is for people to wait.

You want people to say to them selves "well it ain't gettin any cheaper" rather then "I'll just wait 4 months."