Sony says – No PS3 price cuts!

Sony has responded to recent rumors stating that there will be no PS3 price cuts in the near future.   Sounds like a bad businesss decision to me.  With game developers threatening to pull support, Sony clearly in last place in the console race, how can they justify the huge price premium for their console?   The fact that it has a Blu Ray player does not fly any more since you can now pick one up for $100 from time to time.   Xbox 360 has the same games and better exclusives with pretty much the same image quality and costs much, much less.   Heck my HTPC with a ATI HD4850, 2GB ram, Vista,  dual core X2, 500GB HD and blu-ray player was put together for the same price as a PS3 and games for it cost 2o-50% less and play awesome with a wireless xbox 360 controller.