Nah - I think it's human nature to want the latest and greatest thing - so although some will switch over the price drop, I don't personally think it's gonna do too much damage.
Also, I think people will be more cautious over the PS3 on launch. I know nobody who is still on their 1st PS2 as they've broken down etc, so now, even people not connected or into the scene in any way (or at least those whom I know) think the PS2 is pretty cheap and nasty through word-of-mouth by others - so I think many will be holding out a few months to see if any hardware changes or problems arise before putting down their hard-earned cash.
Therefore, giving Microsoft free-will with next-gen customers for about a year (if PS3 was to launch in 2007), I think will be a big mistake. This is just my opinion and some will buy PS3 as it's a PlayStation, but I for one will not be purchasing a PS3 until around 12 months after launch as I know just what Sony are like with their early console revisions (v1-4 for example)
