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Well, I think the big reason that Sony is not dropping prices is because it is facing little in the way of competition on price. Lets face it, the only dedicated eReader that is actually cheaper than the Sony is the ebookwise reader. And while I know it has many fans, lets face it, it is old technology and is likely not going to steal many buyers from Sony and Amazon.
The one device that might force Amazon and Sony to reassess their pricing is the iPod... its not much cheaper, but it can do a lot more (Though I grant there are many people, especially here, who would never be happy with it as their primary method of reading ebooks).
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Bill
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