According to George Harrison, Nintendo isn't bothered:
"A $100 price drop won't make a difference," said the senior Nintendo VP. "Can Sony afford a $200 price drop? I don't think so," he added.
Hmmm... Can they indeed? A price drop so earlier is basically an admission from Sony that they've got this generation completely wrong - how they will cope when Microsoft cut the price of the 360 and Nintendo release their array of triple-A titles remains to be seen.
Expect Sony's sales to increase (a little bit) over the next few weeks though.