A new rumor of the PS3 getting a price cut pops up every week but the CEO of Sony went on record again denying such a ludicrous idea.
On top of the rumors, you have companies like Activision threatening to cease support of PS3's unless Sony cuts the price.
"They have to cut the price [of the PS3], because if they don't, the attach rates are likely to slow...If we are being realistic, we might have to stop supporting Sony."
Will Sony call their bluff? I think so...
Don't get me wrong, knocking the price down will definitely increase sales but what will that do to Sony's profit on each console sold, considering their already breaking even or even losing money now.