hummm, in france, there are a lot of big retailers who are selling the ps3 for 349 euros price (ok it's the bad bundles)... and threre is no ps3 explosion... but it 's clear when ps3 will be to at 299 euros, that will a tsunami in many countries in europe (even in UK). For exemple in france (or spain, deutchland...), it's very hard for microsoft to sell more than the ps3 with a low price price (179 euros arcade and 239 E 60go pro), can you imagine the effect of a price cut? I agree with you when you say that no realistic, when only one or two retailers drop the price... but if there is a sony price cut, microsoft have to cut their price too in france and europe... even if 360 realised  gigantics progress in france... (1.300.000 360 an 1.400.000 ps3)

It sold well when it was free with HDTVs too!

Don't read into this event too much.

 I follow one deals forum regularly, and whenever something popular goes on sale (or there's a price error) and it's going for well under retail, scaplers will buy them up to resell on ebay and craigslist.

Several things:
1. This is the Internet. You get the world descending upon a single point.
2. It is not the normal price, and for all practical purposes, it is a limited time offer. And yes, there is demand for the PS3, or Sony wouldn't be selling any now.
3. The 80 GB unit was priced under the 40 GB on shelves now.
4. It isn't going against a 360 (or Wii) which would also stand a chance of getting a price cut.

I remember Sony saw a bit of a sales spike also when they phased out backwards compatibility, because people who wanted backwards compatibility were compelled to get the system. So, you need to take all this with a grain of salt. Will it result in an increase in sales? Yes. But can't tell how long there will be a sales spike. I have yet to see $300 me a mass market price point. Even $250 pushes it, but Nintendo seemed to show that $250 (with a game, and same price as they initially sold the NES in the USA) is a mass market price.

Over the Wii?

That happened a few months ago whe Best Buy ran a sale where Call of Duty 4 and others were $20 or less.  They were gone in 60 seconds, with a line at the door to get in.  I got there like 10 minutes after the store opened and almost all the sales stuff was gone.

you really need a banning... you've been continually proven wrong with your reasoning and you still spout the same bullshit... thats called trolling.

Sony CEO during fiscal year financials "We lose about 10% per PS3 still" so less than 40 dollars.

Yes, even if they cut the price to 1 dollar they will have revenue.