Joe,
IMO, no one in the Blu-Ray camp will be able to lower price on standalone players. I mean look at the rest of the electronics that they (Blu-Ray manufacturers) sell--i.e. TV's, DVD players, etc... I mean Sony alone is one of the most expensive brands out there, the others too, aren't what anyone would consider bargain brands. So why would they lower price on Blu-Ray player to come close to match HD-DVD? I don't think they know how to compete with cheap players. Now does this mean the price won't come down? No, I am sure players will come down in price a little, but nothing close to HD-DVD (if rumors are true). To start, Blu-Ray would have to drop by about $300 just to catch up with current HD-DVD prices, not to mention how much more once HD-DVD drops to lower price.
And as far as PS3 coming down, well first of all, it isn't a standalone player, but Sony isn't talking about dropping it by $200 or more dollars. More like $100, and perhaps "eventually" lower. Like that is any different than normal price drops on game consoles.