I guess I'd get banned for bumping this thread a year from now for major lols?

:(

sub 300$ isn't just some arbitrary number. It's actually the spending limits for most people in any given week, (or a month for that matter).

Its not going to happen chief. There will be a temporary boost in sales for about 2 weeks then its back to the same levels as before and all this assumes that the xbox doesnt match the price drop. If the 360 also drops the price then you can kiss any temporary advantage goodbye.

The reasons are fairly simple but most importantly, normal people dont see a console war nor do they care which brand they buy (except in foreign markets). All normal people care about is price point, and what games they want to play. In both cases, the 360 wins hands down. More games, better games overall, and better performance on cross console games.

You want the PS3 to surpass the 360? The only way this can happen is if you overcome the game shortage (compared to the 360) and the only way to do that is to lure people in with price point. The PS3 needs to be $50-$100 less expensive than the 360. This is the only way for Sony to ever surpass the 360 in sales.

And oh by the way, I still do not own a console because the game selection remain sparce but the 360 definitly has a huge edge. The wii remains a strong second for me because of its unique experience. The PS3 only has 2 games that I am interested in that I cannot get ont he 360 while the 360 has about 5 that I definitly want to play.

I prefer windows. I don't mean Microsoft's, but rather like... a neighbor's.

^you're either lucky or unlucky

I would love to see a source for that.  Spending limits for what? Whether people have a spare 300 dollars a week, a month or a year is irrelevant if they aren't willing to spend that $300 on the console in question and at the moment we have absolutely no data to support the claim that there is a huge cohort of people out there that are just waiting to drop their next spare $300 on a PS3.  Dropping price on any console has the potential to increase sales but to argue that dropping the price of the PS3 will have a greater impact on sales than a similar price drop for the Wii is speculation and nothing else.

Well if this site is any indication every current PS3 owner will buy a slim doubling the install base. Honestly I think the slim will do good for a year or so, and may convert 360 owners over to PS, but will not bring the company above XBOXes lead.

I think Infamous is failing to realise something.

In Europe a cheaper slim PS3 would have a massive effect.  But Microsoft could still turn it back to around even with a slim of their own and a price cut.  Infamous also fails too realise that Sony is bringing in the same sort of thing Nintendo has done with a slightly more accurate wand, but with Natal Microsoft is going to have an opportunity to revolutionise gaming (it may or may not happen).

But the biggest thing he fails to realise is the difference in America compared to last generation.  Microsoft actually has equal or better demand for it's system than Sony does in North America.  They have to fight for every sale they get in Europe or Japan, but in America Microsoft has truly won some hearts and minds.

Um, are you forgetting that Sony is not the only company surrounded by rumors?  I certainly hope you're not so blind that you don't think MS and Nintendo aren't  just sitting there WAITING for a Sony price drop.  You know why?  Because they have profitable hardware on the market and can not only afford it, but are actually planning on having to do this to counter Sony.  Any company who doesn't foresee this and doesn't have a plan of attack to combat it is not going to be in business too long. 

I ABSOLUTELY HATE the argument that "everyone who wants a ______  already has one".  That is the stupidest thing I've ever heard.  Please stop using that as analysis.  You're basing this theory on all your friends telling you that they'll buy a PS3 after the price drop?  That's completely anecdotal and has nothing to do with anything.  I have at least 5 friends that want a 360 and don't have one yet (this is not an internet exaggeration, it's actually true).  So if we're going to use that as an argument, I guess we'll call it a draw. 

Also, about the slim--there are rumors surrounding that one too.  For example--there is a possiblity that they will do a feaux price drop on the old units and then make the slim model be the flagship unit at the higher price, which would only be a temporary price drop until the old stock is gone from store shelves.  There is also a rumor that the slim is nowhere near hitting the market yet.  There is also a rumor that there will still be absolutely no price drop, just a thinner piece of plastic encasing the PS3 so that they can call it a "feature" and charge you the same amount of money.  There is also the rumor that if there is a price drop, it will only be $50 and that the 360 Elite model will become the new Pro model at a similar price, which will still be lower than the PS3, and may STILL get a price drop of its own.  (that last one is from Ars Technica's mole who is pretty much always spot on.)

The BluRay argument doesn't work for me either.  BluRay isn't catching on the way you think it is.  Here's a perspective adjuster for you:http://slashdot.org/story/09/06/22/1339213/Blu-ray-Adoption-Soft-More-Still-Own-HD-DVD?from=rss

Pretty sad, huh?  But I digress.  Digital distribution is eventually going to overtake disc formats save for the hardcore movie collectors, who are the minority.  The cable companies have had on demand HD content for years now, and the Xbox 360 is about to have instant-on 1080p on demand movies to supplement the Netflix service.  To that I say, "What's BluRay?"  (Those of you who like to own movies may disagree with me on that particular point.)

All in all, your theory is mostly wishful thinking.  Sony has proven time and time again that they not only tend to over promise and under deliver, but also that there is no magic pill that's suddenly going to catapult them into first place.  MGS4 was supposed to do that and it didn't.  Little Big Planet was supposed to seal the deal, and it didn't.  Killzone 2 was supposed to be the killer app, and it wasn't.  Price cuts were supposed to save the day, and they didn't.  The last two years were supposed to be "the year of the PS3" and they never even came close.  Good for Sony if they can pull even with the 360, or even pass it up, but most analysts agree that this is not going to happen for a few more years. 

Wishful thinking, I think PS3 is bound to be 3rd this generation WW, 2nd in JP, close 3rd in EU and distant 3rd in America