Sony would see even more European sales if their product was competitively priced alongside the Wii and X360.
Would they? I wouldn't buy one now if they were £50, and I would buy one tomorrow at whatever the current price is if MGS4 was out, or FF13 or RE5, or whatever.
I'd have thought the main factor limiting PS3 sales right now was lack of unique games. When it has some Japanese RPG's, a Metal Gear Solid game, a KillZone game, a Resident Evil game, A Syphon Filter game, or any one of the big games that come out exclusively or first on Sony consoles, it'll sell whatever the price.