http://news.cnet.com/8301-17938_105-10129785-1.html

The article basically goes on to imply that Sony is a public company and therefore must keep shareholders happy.  Here's an excerpt:

Good find. Much better and less biased than the "sinking ship" article. Everything makes sense and is accurate.

Look at CNET go. Hi CNET!

Well, that was brilliant at pointing out the obvious, good job

When you take multiple products and combine them the typical consumer will see the value of that product as the (usual) price of the most expensive product that they're interested in. In order to convince a customer to buy that product they have to see the value in paying that price for your system based on the components they're interested in ...

At the moment, most people do not see much value in a Blu-Ray player and as time goes on the price of Blu-Ray players is declining which prevents people from ever seeing much added value from its inclusion. What this means is that Sony needs to justify the $100 (or more, depending on how you measure) price difference between the XBox 360 in order for most consumers to see the value in buying a PS3 over the XBox 360.

This is why I would say that Sony has a much more serious value problem than a price problem, because if they reduce the price of the PS3 it is likely that Microsoft will match their price reduction ... this means that they will remain in a similar position and have to demonstrate added value in buying a PS3 over an XBox 360.

But it isn't obvious to everyone.  There are contributers are arstechnica still stating that the recent manufacturing cost estimates from iSuppli suggest that Sony will drop the price of the PS3 soon.

And yet clearly Sony cannot.

But if you look at the iSuppli numbers, you'll see that Sony is paying about $450 to get each PS3 to the end of its manufacturing line.  Then, Sony ships the product (across the world) and gets it to a distributor, who takes a fee, and then gets it to a retailer, who takes a cut for putting it on their shelves and selling it.

Basically, Sony is still losing at least $90 per unit, and probably closer to $100 per unit.  And people are calling for a price cut?  This article explains that even if Sony was breaking even, they wouldn't be interested in a price cut because generating a profit is far more important than generating additional sales.

Yea, until Sony can justify its price point, the games games r rolling in and that may help the ps3 sell well when it finally breaks even. But Sony is gotta really step up its advertising campaign to advertise the ps3 properly into the new year

i just read first part and his theory falls apart than blu ray is also used for games

hell metal gear solid 4 would be have 5-6 dual layer DVD if it wasn't for blu ray.

This is true, and I would like to add that very few people have the money and time/ resources available to really showcase the advantage of a Blu-Ray player. 

wtf... where did this come from?

EDIT: Ohhhh you meant someone else, not the OP.  Gosh it is so hard to understand all your posts.  Grammar much?  They only use Blu-Ray for games cuz it is included and has more space.  Had it been a standard DVD drive, the game would have been developed a lot differently to fit on a DVD or at least only 2-3 DVD's.  Either that or they would have created a format like Blu-Ray anyways, but just used it for games rather than try to force it out on everyone.  HD-DVD really should have won... it saddens me that HD-DVD players were sub $200 so long ago, offered 2.0 spec (online connectivity) on all models, were cheaper to produce discs for long before Sony's Blu-Ray... Stinking Sony had to bribe production companies.