According to the Financial Times, Sony stands to lose $488 million in their games division this fiscal year as sales have been "lackluster" due to the price point and selection of software. Stringer says that the software situation should begin resolving itself by the end of the year and says, "That [price cuts] is what we are studying at the moment. That's what we are trying to refine."
Analysts have talked about the PS3 price drop being around the $100 mark, which would make it the same price as the now deceased 20GB model of the system. But, for all we know Sony could shock us all and make the PlayStation 3 the same price as the Xbox 360 -- causing all manner of hell to break loose. And who would be the winner? The consumer, of course.