I saw this in a press release a while back and forgot to blog about it. Cakewalk has announced that it's dropping the price of Project 5 Version 2 to $199 effective August 1st, 2006 (Now Available on Musicians Friend). This new price makes Project5 quite compelling if you want features similar to Ableton Live but can't bare the sticker price of Ableton.
Some would argue that Project5 is not as solid as Ableton for live performance. Cakewalk has a full page ad in the September issue of Keyboard Magazine with the tag line "New Attitude, New Price". To me this indicates that Cakewalk is ready to get serious about taking Project5 to the next level. The press release mentions "a major update for Project5 to be available in Q1, 2007. The Project5 update will be provided as a free download for registered Project5 users..." Seems like they might be trying to close the gap with Ableton. Time will tell.