Yeah I agree with papflesje, It they drop the price in february, MS will do nothing, but they will cut the price around october, like this year, to win another xmas. So, sony will have to be ready for that and aswer with another price cut.

But, I still think, that a 100$ price cut in march is needed, 50$ would be good, but not enough IMO. I also think that a 250$ playstation 3 by the end of next year is a correct price (and 99$ for a psp, 69$ for a ps2)

though that ould be optimal, im doubting they will do that as it would kill financially. In holding off until the 360 drops (or if the 360 does not) a late october or so, Sony could see revenue gain and profits for 1 maybe 2 quarters. thus giving a price drop, and a slight loss in the drop quarter less of a sting 

Depends on how much the price is cut. If 50 USD then who knows... :S probably will favor 360 over all I think.

for 100 USD -

NA - Lead for the first few months, after that we can only guess.

EU - PS3

Japan - PS3.

Can Sony drop the price of the PS3 next year? Last time I checked they were cutting thousands of jobs, raising prices on many of their products, and talking about looking at their PlayStation division for further cuts. This to me doesn't sound like they're in any position to have expensive price cuts for the PS3 that would cost them hundreds of millions or billions of dollars in potential revenue losses.

Bah they cut jobs to cut the price ^^

cutting the development form under performing games would be better, sony could save a bundle by killing off poor performing IPs and there dev teams.

Which internal devs are preforming badly for Sony?

well as not having access to their financials I can not tell you. however sony should know who is costing them money in terms of development cost vs sales, and who is under performing.... they have the largest number 1st party dev teams, and in the current state of their platform something has got to give.  

another route if sony does not want to cut devs, is not to make sequels to under performing IPs

That goes back to my original question. How big are we expecting this price cut to be? $50 isn't going to bring the PS3 into mass market price. Even $100 is arguable considering that PS3 has lost it's advantage as the cheap Blu-Ray player. So what do you feel will put the PS3 into a mass market price range?

Am sure you could make an estimation looking at the sales of a game and production values, it's pretty easy to tell which studios are or are not doing well. I have not kept track of games released by first party studios but do know GT5 and GOW 3 are coming.