In US, PS3 launced at $599, is now $299...$300 off in ~3 years (highest priced model).  For comparison the 360 launched at $399 (elite launched later at $479) and is now available for $299 (again highest priced model)...$100 to $180 off in ~3.5 years.

As I don't live in Europe I won't pretend to know the price drops there, but in US, Sony's price drops have neither been small nor slow.

Sony wanted originally to realize Kutaragi's vision, bu they failed to predict how costly the parts he was aiming for would be.

Ideally they should have delayed it the whole project by about two years, and changed somethings along the way to make it more efficient.

believe it or not...xbox has been on the market for full 4 years.

360 Launched November 22nd 2005...  3.98 years...  ; )

Sony as a whole, perhaps... I don't know for sure and I don't think you do either.  PS division was taking major hits immediately after PS3 release and still are losing money.  Sony as a whole started losing large amounts of money in late 2007 to 2008, mostly because the average consumer now has less luxury money to spend and when Sony's products like HDTVs and laptops offer the same as other companies for hundreds more, people are going to pick the cheaper option.  Don't get me wrong, Sony has some very nice quality sets, but the competition is so close in quality and for $300+ cheaper.

Do you think they'd still be losing money if we weren't in a recession?

I think their PS losses would have kept them close to the red, if not in the red still.  And that depends on if the Yen still rose in value.  They'd be a lot better off if we weren't in a recession, that's for sure, but so would everyone else. 

Agreed, I was thinking the same thing.

Highest priced model is $350 for PS3.  Even so it isn't really akin to the 60/80 GB BC models.  Actually the 160 GB still sells for $400, so that is the most expensive.

Since you are comparing the highest price to the lowest, then the 360 also halved its price in about exactly the same time frame.  Even more if you factor in the elite.

however, it's still a wonder how multiplats looks just as good if not better than the ps3, on the 360.

Despite being ahead of it's time, 360 seems to replicate it pretty well for a much cheaper price.
Of course, I own ps3. I own it because it's a playstation.
However, maybe MS could only do this because they allowed for RROD to happen. RROD comes from too much power with too little (cheap) cooling.

I really just wish sony had put a little more ram in the system.