It's absolutely the right approach, everything is now in order, and the PS3 really is the only console that does everything, and does it well.

Wii is just crap all round.
Xbox is noisy, unreliable lacks Blu-Ray and has costly extras.
PS3 has pretty much everything except a $5 HDMI lead included, and has by far the best games this season.

I love how the press love to spin things. Yesterday it was all about how badly Sony were doing. Now today it seems that Sony are making $200 currently on every PS3 sold.

Now conder than Sony came within 100,000 units of matching Xbox sales last quarter (1.1m Ps3, 1.2m 360), and Microsoft have already had their pricecut, lose money on the cheap models, and don't sell too many of the expensive models, who do you REALLY think is having problems?

As much as all you fanboys that want a pricecut, it 'aint gonna happen, or at least it does not need to happen, as clearly Sony can near on match the 360 sales, and make a tonne of profit, whilst Microsoft make loose change.

Seems to me, Sony have the choice, they can take the respectable sales numbers, and great profit margins, OR do a price cut and get a large boost in sales numbers.. Nice place to be in. Rather that than Microsofts place right now, "did a price cut, and still nearly got spanked by PS3".

It's also worth pointing out that PS3 1.1m was SOLD and Microsoft's 1.2m was SHIPPED! Read the financial statements, Clearly Microsoft are cooking the books...
Microsoft:
http://www.microsoft.com/msft/earnings/FY09/earn_rel_q4_09.mspx

"We shipped 1.2 million Xbox 360 consoles during the fourth quarter of fiscal year 2009, compared with 1.3 million Xbox 360 consoles during the fourth quarter of fiscal year 2008."

Sony:
http://www.bloomberg.com/apps/news?pid=20601080&sid=axhzsmkpSGp0

"Sony sold 1.1 million PlayStation 3 consoles and 1.3 million PlayStation Portable machines in the quarter, down 31 percent and 65 percent respectively from a year earlier."