Well how many times have companies have lost tons of money and are probably still losing money on each console but still do a price cut??

firmware update,

i was kinda expecting it wouldnt be the price cut should happen in the fall im thinking it will be game related release dates or FF7 anouncment

I highly doubt we'll see a PS3 price cut. Not until the fall at the earliest.

A 40gb sku wouldn't decrease their production cost by more than a couple dollars so it certainly wouldn't make sense to sell that for $299 either. Might as well drop the 80 sku. A 40gb with backward compatibility will INCREASE costs over existing skus and need to be more expensive not cheaper.

I expect only PS2 will drop price but we'll see some major firmware upgrade for PS3, netflix maybe and maybe some game announcements.

Still delivering the value, that is nice to hear. I rather suspect a price cut would be received better.

Could be a Bundle of some sort

But if they drop the price of the console then more people will buy it that would not have originally and then these people buy games for their console. The majority of the revenue for a console manufacturer is from the games it sells. And this year is going to be a great year for first party titles coming out.

The firmware update sounds like thats what it will be then. That will be alright as long as it will have the features that was leaked awhile back. It was a pretty impressive list of features.

maybe their releasing new colours!

an announcement of a corporate takeover of both microsoft and nitendo;)