Cutting prices often stimulates demand. It seems to be working for the Sony PlayStation 3 at least for now. According to The Wall Street Journal in Japan "unit sales of the PS3 exceeded those of Nintendo's Wii for the first time in the week ended Nov. 11." There is some evidence that the PS3 is doing better in the US as well.
But, the up-tick may not last. The Nintendo Wii is still a runaway success. There may be a shortage of the game consoles at Christmas because Nintendo cannot keep up with demand. But, that problem will only last so long and the Wii will be back on shelves everywhere.
Microsoft sill has a secret weapon for selling its Xbox 360. The astonishingly popular "Halo 3" game is driving sales of the 360 console, and that product appears to have "legs" Sony does not have a comparable game that is available exclusively for the PS3.
So, Sony may get lucky and the price cut on the PS3 may keep sales relatively high. Or, it could just be a mirage brought on by bargain hunters.