Well we already heard about the Jasper motherboard coming out in spring so a price drop is a given though hopefully with enough savings to MS it should be alot bigger. I'll go out of a limb and predict $200 core $300 Premium $400 Elite.

With games ?
Then MS can be in trouble too.
Ok, Bioshock and Halo 3 are exclusives ( Like Gears of War ) but Sony will have other great exclusives as well, and other great games will be multiplatform

I wish MS would cut the price to match 399 PS3, but MS is becoming so dominant in games and sales they probably wont need to.

360 is becoming a juggernaut in USA. It is outselling PS3 nearly 5-1 right now. The games just keep coming, and no third party dares ignore 360.

The PS3 does have games and more are starting to come out which is nice but so far MS has come out with way more games and more importantly highly reviewed games only available to them.  Would have been a real boost to SONY if Lair or Heavenly Sword would have gotten critical acclaim.  They still have high hopes for this holiday with games like Ratchet, drake, haze and hopefully unreal 3.

Everyone one who wasted cash on a PS3 loves to tout future lineups. The 40gb PS3 *may* sell, but what's going to happen when folks realize 1. It's a more advanced system but won't get used much until my 5 BR movies show up - and gasp - there's just two shelves of PS3 titles with PS2 games mixed in ... 2. Wow ... my PS3 doesn't play my PS1 or PS2 games ... but it plays Blu Ray?! or, my personal favorite - 3. I have free online access with my PS3 - now, I can download Warhawk and Calling all cars until the BIG HITS hit ...

I would never buy a system without it having killer games to start off with. Otherwise, I may as well buy a savings bond. Seriously ... why should anyone have to wait for games? It's your money, true, but why are you really buying it? Peer pressure? Because you love Sony? I love my PS2 too, but if the PS3 were a major league player, their record would get them sent to the bush leagues. It could compete one day, but right now, with the exception of a few countries, the PS3 is getting a royal thumping ... and that was before Halo 3, Bioshock and the like hit.

Sony would have done a lot better just releasing the PS3 alongside the 360 and taking their lumps. Then, it coulda been a contender ...

@madskillz

Well my cousin bought his PS3 because he owns every system. He even owned the virtual Boy LOL. Not sure how many are in the same boat as him but that is one population of the PS3 owners. Then I think you do have the sony "fanboys" just like all the system. Then you have the ones that need a big hit I would assume similar to yourself. Then there are those that will just wait until there is price drop. Then there are those that just have 1 game that they fell in love with that as long as that system plays it they will buy. I personally bought my 360 because of Saints Row. I am sure there are other reason why people buy a console but those I think are the most obvious.  I agree that is not worth buying a PS3 over a 360 and even a Wii at the moment.  I am getting a Wii when Mario Kart comes out until then I'll play it at my cousins house.

Another problem the 40gig PS3 has is lack of backward compatibility. At least the 360 has 200+ older titles it can run.

The 40gig PS3 is more handicaped than the new $279 360 arcade machine deal.

@ El Nino334

I feel you on the reasons. For me, I stopped buying stuff right off the bat - I usually want for Gen. 2 stuff to hit. I bought a PSP the day they went on sale - the PS1? The weekend it came out. I picked up other systems shortly after release. The 360 sold me on COD2. The Wii? I bought one to flips, opened it and played Wii Sports and was hooked.

For the PS3, I was interested initially, but based on the price, and lackluster lineup of games out right now, I find it hard to justify buying it. I have a 22" LCD that has DVI inputs and I have a DVI to HDMI cable, so I could watch HD stuff off of a PS3, but ... I am no longer thrilled by being the first kid on the block with stuff (except my DisH HD-DVR!) But ... I need to have some sweet games to justify it. I don't care about BR, wifi and the current games - and buying it now, I only want the 60gb. And right now, it's still too high for my tastes.

Regardless, I may sound harsh toward Sony - and honestly, I absolutely enjoy watching arrogant folks dine on some crow. Losing this generation would serve Sony good ... and make them rethink their efforts.

Cute avatar, btw ...

The thing I would like to know is what does Sony do if the price drop does as badly as the last one? If they keep dropping the price it will make some people wait longer. I don't care about the BC but I think I'm going to wait for a couple more price drops.

Funny thing is I can remember all the Sony fanboys calling people broke and telling them there won't be a price drop for at least the next 2 years. Next thing you know they were saying Sony listens to it's customers so they're dropping the price.

@ Godbless
I agree. I saw people with this in their sigs on forums:

The folks that complain most about PS3s can't afford them.

Now? I'm ROTFLMBO ... seriously, there are some folks that do research and don't just buy a console based on who makes it. I bought a 360 because I liked the games. I bought a PS2 because I played GTA 3 and was hooked. Maybe after SOCOM or MGS4 hits I may get serious about a PS3. But right now? There's no real reason for me to pluck down $500-$600 on a glorified BR player that doesn't know what it wants to be when it grows up ...