At Leipzig, SCEE President David Reeves stated that he thinks market expansion is a wonderful driving force in the gaming industry. Market expansion builds and broadens the market for the casual market. He stated, "We're very happy Nintendo broadened the market to where we have never gone. But Sony is going places where EA and Microsoft have never been. We're very happy about [market expansion]."
Despite recognizing the casual market's attraction to the Wii, Reeves also states that it were Sony's original innovations such as the EyeToy, SingStar, and Buzz! from the past on the PS2 that first marked a broadening of the market.
To further comment on how the PlayStation 3 itself attracts to the casual market, Reeves responded that the PS3 won't receive a price cut---at least in Europe. He claims that the starter packs work very well, and the soon-to-be initiate of the "bundle plan" will reap further benefits.
As long as Sony sells their console and have it all planned out, no one should be the bit worried. Price cut or no price cut.