Sony, after saying it wouldn’t just days ago, slashed prices on the PS3 by $100, bringing the 60GB model to $499. In August, an 80 GB model will be available for $599. However, I think that the PS3 will see little movement in sales because of the price drop. I think this for a few reasons.
First, the Nintendo Wii is the mass market video game console these days. It’s much cheaper, $250 vs. $500, and allows a gaming experience that excites even non-gamers. Nintendo has been the most popular gaming console in terms of sales since between January and May, 2007.
Secondly, PS3 doesn’t have the same quality of first-party titles that others consoles do.
Thirdly, it’s too little too late; the hardcore gamers have purchased systems and the price is still too high for people that aren’t dedicated to gaming.
Here is a link to a great post by Matt Packham of PC World that I read. It dissects the video game console, the market and the consequences of buying a PS3, no matter the price.