To me, the cost of the system is fine, but a price drop I will take. It's the cost of the memory cards and the lack of interesting games that keep me from buying one. Sony thinks this may move systems, but it won't, not yet anyway.. Nintendo, in a rather smart move, price dropped the 3DS right before a stream of quality titles were about to release. With Star Fox, Zelda and Super Mario 3D Land all within a short time period, the price drop was effective in selling units.
If it were me, I'd hold off on announcing a price drop or even considering one, until you start to see a batch of good games coming out. So far Sony has very few solidified dates for some of their big titles and so far the only one I see this year that might interest me is the MGS: HD collection. Price drop or no, they need a few more big name games to really warrant even having a price drop, as they will sell the software and the systems in one go.