In an interview with EpicBattleAxe, Microsoft’s Xbox 360 Product Management Director Aaron Greenberg stated that Microsoft expects a PS3 price cut by E3.
"As far as the PS3 price drop rumors, to be honest we fully expect a PS3 price drop to happen by E3 at the latest," said Greenberg.
"If you look at the market fundamentals they have no choice but to do so with continuing year over year sales declines over the last 5 months, significant loss of market share and public response from consumers, retailers and publishers," continued Greenberg. "It is also a very difficult time economically to try and sell a product at twice the price of your competition."
At least in the U.S., the PS3 has been trailing in hardware sales, so dropping the price alongside all of Sony’s upcoming 2009 AAA titles might not be a bad idea.