While Sony remains adamant about this whole price cut business, analysts keep predicting otherwise.  Based on the picture economic experts have been painting, it looks like Sony really could use a miracle.

The Wall Street Journal reports on the PlayStation 3's limited prospects, suggesting that the PS3 may become an "afterthought to game publishers" if it lags too far behind the Wii and Xbox 360.

Microsoft, attempting to keep its edge over the PS3 while fighting the Wii's lower cost and accessibility, have already slashed prices worldwide, with the most basic 360 model dropping to $199.  Nevermind all the bundles they're using to push sales.  Meanwhile, the Wii appears to have overcome its shortage issues, and sales have risen dramatically in the US, with two million sold in the last month.  The Xbox 360 sold approximately 836k units in that time, while the PS3 falls short with 378k, according to the NPD Group.

Sony continues to bank on the PS3's Blu-ray hi-def video players and 80 GB hard drive, which neither the Wii nor 360 can offer, but the company's initial plan to sell the console as an inexpensive Blu-Ray player appears to have backfired with new players now going for less than $200.  Coupled with the current economic state, the PS3's "advanced features and cutting-edge components" fail to achieve a broad enough appeal to make up for losses.

The company has already cut backward compatibility from the production models in an effort to reduce loss-per-console.  Further price cuts would undo all of Sony's efforts to minimalize their losses, but analysts think it may happen in 2009.  Michael Pachter of Wedbush Morgan Securities expects a price drop in April, the start of a new fiscal year, stating that this could help boost PS3 sales.

Last month, four of the five US bestsellers were either Wii or Xbox 360 exclusives.  Sony's top game was Call of Duty: World at War, but NPD has reported twice as many gamers bought the 360 version.