If Sony is desperate enough they may do it

I may just wait until the price drops to Wii levels before I buy a PS3, looks like I wont have long to wait

I agree - its definitely possible.

Or we see an extended bundle, where they "give away" a couple of big games for free. Imagine a $399 PS3, packed-in with R&C, MGS4 & Prologue. That might even be enough to tempt me :) 

 Rolf

4 player coop level building and online community is so casual.

 When will Ps3 haters get it through their heads LBP apepals to everyone from casuals to the most hardcore gamers you can find.

The same day that Nintendo haters get the same thing through their heads.  The same day that Hell freezes over.

It does not appeal to me much..

I think Pachter is right in that if the PS3 sees a price cut again next year. Then so must the PS2. One more price drop, and Sony will force a cut throat price war. Microsoft will follow suit, and Nintendo will have to follow suit as well. That means one or both of those systems will be dangerously close to the current price of the PS2. Unless the PS2 sees a dramatic price drop at that point. Well the console will finally be done no matter how venerable it is. The newer consoles will eat it alive. Right now its price protects it.

That however is the reason that it probably will not happen. Sony is losing a lot of money per PS3 they sell. However those losses are deferred somewhat by the profitability of the PS2. Increasing the loss on the first, and dramatically decreasing the gains from the other is not a sound financial decision. Further more it will spur next generation investment on the part of consumers depleting somewhat the licensing fees generated by the PS2.

While the Sony loyalist might think this is great news finally consumers moving to the PS3. The reality is these consumers will be up for grabs. The other two consoles will have better libraries, better price points, and thanks to the removal of backwards compatibility by Sony they will have little incentive to stay brand loyal.

While it is possible Sony would have to be supremely desperate as others have said. Financially at that point it would be smarter to adopt a survival mentality, and accept the situation. The level of risk is almost profane for this to happen. Better to wait till the PS2 is gasping before making the move.

Didn't they said months ago that there will be a 99$ PS2.

@Shams

Eye of Judgment and Lair big titles in Japan?

?????

Oh please.

there will definitely be another price cut in 08, the only questions are when and how much.

I'm not even going to even consider buying one of these until the price settles for 8 months or so.