If and when Sony slashes the price on the PS3, MS while likely trim their prices as well. With the 360 being cheaper to produce, especially now with Jasper, and the higher volume of sales, MS can afford to cut prices far more than Sony can. Sony just posted a 1.1 billion dollar loss, didn't they?
I'd love to have a PS3, but the only game I'm actually interested in is FFXIII, which won't be out in the US until 2010. I've thought about picking up one of the new PS2's with the integrated power adapter to play some of the older FF and other PS2 RPGs, but it'd still be a pricey project because I don't own a TV yet.