Yes but PS3 fanboys will be happy to see the end of the 360 lead... even if it does more bad than good to Sony ...

Microsoft and its supporters will sit back and laugh as Sony's game division goes bankrupt and the PS3 would be discontinued. No PS3 anymore. Just X360 on its way for a profitable second place in the 7th generation console wars behind the market leader Wii.

Please Sony drop the PS3 console price soon so we can watch your Sony game division disintegrate and follow Sega and others into the video game history books.

"Sony expected to post fourth monthly year-over-year sales decline in a row for February 2009" Pops champagne cork.
"That being said, we do believe that the PS3 is a console with a “10-year life cycle” and the PS3 will gain a tremendous amount of ground in 2011 through 2017, when the console can be positioned as a cheap Blu-Ray player, but we do note that we have some short-term concerns with the console". Keep spinning that Sony propaganda it is priceless lulz.
"Xbox 360 is the superior console for targeting the core gaming market in North America. Sony PSP, and PS3 are all expected to post yearly decreases over -10%." Music to my ears.

XBox 360 is a superior console than the PS3. Game developers have full support behind XBox 360 due to it being easy to program games for and MS has very deep pockets and can buy exclusive DLC and exclusive content.

Sony will announce PS3 price and you open up the article on April 1 and you have just been rick roll'd. Rick Astley - FTW.

@Slowmo: Option Z could also be applied to MicroSoft.
In another posting here on vgchartz it shows that the EDD division is still deep in the red, and considering its easy to mod the hardware and pirate the xbox software, it's not so sure it will come out of the red digits soon, or in the long term for that matter.

MS Stocks are also plummeting lately due to the pessimistic forecasts, and it's possible that shareholders want MS to go back to their core-business, Windows and (mobile) enterprise software + solutions to make MicroSoft as a whole more profitable again.

More on topic:
Whether or not Sony will introduce a price-cut depends on several factors: Exclusives like GT5P, Killzone 2 and LBP are received well by the critics and gamers, and software sales are the most important factor in Sony's business model. If they sell enough 1st party titles there's no direct need for a pricecut.

And then there's the currency-rate. Right now the Yen is too strong and puts a lot of pressure on Japanese companies like Sony, Toyota who mostly export to the western markets. If the yen weakens, it might give them enough space to cut prices.

And there's the option to improve the production of the PS3 components. I don't think it will take much time any longer before the 45nm Cells will be mass-produced and other components will become cheaper to produce. Sony can win a lot there, more the MS which uses older components where the production process has allready been optimized ( plain DVD, PowerPC chips, plain Memory banks )

If they cut prices however, MicroSoft will have another problem to deal with.
At the moment the Arcade is selling for 149 Euros ( with 2 games ) and the Pro for 199 euros ( also with 2 games ) in the Netherlands, but the PS3 / Wii sells the majority of the software over here. I think it's a combination of brand / piracy / bad publicity on MS. So making it cheaper won't help much.

Adding in extra features / making XBL free ( or cheaper ) will only cut down MicroSofts margins, putting more pressure on the divisions profitability, while it's not sure whether it generates more revenue from the software. Sure netflix can bring in some extra revenue, but movies are easier to pirate then games.

@numonex:
Are you a developer ? Studios like Guerillia, Insomniac, Naughty Dog, Media Molecule shows that it's not harder then any other platform, it only requires another approach to the hardware. Most parts of the game-development-chain remains the same.

I've said it before, and I'll say it again: this whole xbox-business is a mistake by MS, no other division from MicroSoft profits from those activities , the xbox has nothing in relevance to search, enterprise solutions, Windows or other hardware like keyboards & mice or Zune.
It cost them billions of dollars and bad reputation while Vista, Windows Mobile, Search are suffering and Office facing more and more competition.

Their only vision was to go after Sony and get marketshare, and for what ? what was their vision behind that decision ?
To become dominant and lock-in developers and consumers, so it's easier to stall innovations in the console business to make "Games For Windows or DX 10/11/12/##" look better and keep Windows as the most viable platform for the media-hub ?
Or sell overpriced accessories like they're already doing, camouflaged by the concept of 'giving customers choice ?'

Microsoft should:

J)Change weapons in realtime
K)Attack Sony's weak point for massive damage.

Seriously though, MS shouldn't have to do anything. They're already at a very good place strategically imo.

MS could basically watch Sony implode. Similar to how Sony bleed as much money as they could out of MS last generation. Sony kept the pressure MS when came to pricing and it's one of the reasons the original X-box had such massive losses. Given the current situation with the currency exchange rates, a $100 price cut on the PS3 would be suicide. Particularly in Europe. The value of the Euro and Pound relative to the Yen has fallen sharply.

Given what we've seen of MS thus far, they probably would cut the price of the 360 and add some functionality to stick it to Sony. The PS3 is the only console that has had its perceived value go down as the generation goes on. Sony continually strips out features from the PS3. The PS3 is not the cheapest Blu-Ray player anymore. It no longer plays PS2 games. It no longer has card readers. Its lost USB ports. It no longer plays SACDs. Etc. Sony is in dire straights. I can't seem them enacting any price cut anytime soon. At the earliest the 4th Quarter of this year and even then $100 would probably be out of the question.

LOL @ Numonex
youre taking this way too seriously

But IF sony would drop the price of the ps3 by 100$ now
it would be the end of the 360

There is a higher chance of X360 dropping Arcade to $150 before PS3 price reaches $300. The other X360 models could get a $50 price cut if the Arcade models price remains unchanged for 2009.

Again with that MS hater...

drop to $150.00.