I think Sony hurt themselves by making the PS3 so expensive. Sure the price dropped $100, but it started out at $600!
Yeah and they still lose hundreds on the deal. When I heard Sony was doing this I thought SEGA SATURN. Good system but Sega lost a bunch of money and set them up to fail with what really is the best sleeper system out there Dreamcast. I think Sony is going the same route they may put out one more console but the aura of PS3 will kill it before it has a chance.