If sony cut to 299 M$ would launch a pro at 199.. simple as that. But neither side wants a price war at this point.

Where did you check that info? I'd like to see the numbers.

Sony would stall at 23 million at a 300 dollar price point... just like Microsoft did. Sale would continue to be alright, but really that's the saturation point at that price especially in this economy. The problem with Sony adding a lower priced SKU is that they would have to strip the system of alot of those "value added" things... and when you buy HDDs in the hundreds of thousands you don't really see a big price diffrence from 40 to 80... and in the end Sony, like Microsoft last gen, will reach a bottom line point that they can't pass because there is a bottoming out price for HDDs.

My prediction is that if Sony does as I staed above, and MS follows suit with $179.99, $249.99, and $349.99 PS3 will continue to outsell 360. I just feel that people will not be as scared of the differace between $299 - $179, as they are $399 - $199. To me the price differance between the entry PS3 and 360 is very intemidating. If I was going to buy a product for a use that I am interested in, but had no knowledge about that kind of differance would frighten me. In my mind the differance between $299 - $179 is close enough for me to really give both products a fair chance.

I still don't see this happening.

So a $399 is about to break even soon, right? (Still selling at a loss in NA, but +/- 0 in Europe, probably same for Japan)

A $100 price cut would mean Sony has to go the way back to a $100 loss per console. After such a huge price cut, the sales will go up, that is for sure. Let's say 10 million consoles will be sold after the price-cut for this year. That would be a $1 billion-loss for this year. 

There are rumors, that sony has to report up to a 2.2 billion dollar loss soon.  Now try to tell the share holders you are willing to make another billion dollar loss for just ONE division.

And you have to consider that MS will respond in a way. And you just don't want to mess with MS moneywise. Heck, Steve Ballmer alone could buy Square Enix if he wants to :D

Yea, it should have been done 2 months ago. But Sony failed again.

ok people, look at the european charts and look at how little the 360 is outselling the ps3 in nearly all the territores, only 2-4k. now one little price cut in europe will put ps3 back ahead in every territory over there and there you have ps3 back in front over there. america on the other hand is competly different. i think sony will have to work hard to start outselling 360 over there. sony just made a huge mistake pricing the ps3 in america.

@ People saying Sony can't cut price because they will loose money.

that is why Sony can not just go out and make a stupid price cut. They have got to change up their buisness model or let things be. Remember their are many ways the price can be cut and profits can be obtained. Just look at my post on page one to see one example. Lastly, if Sony cuts the price, and still looses the same exact amount on PS3, they are not in the same situation. The more PS3's out their the more software that is sold, and the more developers want their stuff on the system. So even if they lost the same on the system they would sell even more software. Things can onlly get better as long as SOny is loosing exactly the same on the system, as long as the userbase grows, and more games sell.

I dont know if software royalties would do well for Sony, resistance2 n LBP have sold well but are no chart busters. $100 drop would be crazy right now. It would be smarter to even out the losses in two price cuts- spaced a few months across.. the first with KZ2/FF(japan), the second with GT5(worldwide).

PSN should be charged too. If m$ can achieve 17 million users.. so can SONY.

$30 x 10-15mil users= enough money to override the price cuts.

EUR was almost SONY's playground but m$ have clawed it back to +1.5mil to their advantage.Price cut will help SONY but the arcade will always remain a thorn in the PS3's back.