Both Sony and Microsoft need to have a price drop on their system in the next couple months. I say need as in it would be more profitable for them to do so than to not given our current market saturation. The only people who haven't bought one of these consoles or the other are people who just outright don't want to pay as much as they are charging and seriously their time has come. Now with Metal Gear Solid 4, Sony has something to sell their system with besides Blu-Ray, and Microsoft has a great number of exclusive, and timed exclusives comming out this year (plus all the ones already out). Anyway, I can see a lot of reasons for people to be interested in both of these consoles and if both of them just sit there and do nothing, they'll lose sales.

Meanwhile the Wii is still happily priced at $250. On might wonder if Nintendo couldn't have sold it for more up to this point (and maybe beyond). It might have helped with supply problems.