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While it's not yet fully fleshed out, we have details on the stingray retailing for between 99$ and 149$ (personally, I'm leaning toward 149$), and we know it will basically be a regular 360 but without a disc drive (though possibly have a port to plug one in).

When you think about this console, especically at the 99$ level, what will Sony do as a counter?

Let's look at some options:
Gaikai ps3 box.
With a straightforward gaikai box, Sony could actually put together a Stingray (which must be always connected, remember) for cheaper than a stingray, using the regular ps+ package price to stream games directly to the consumer. This could be done for 99$...or 99$ plus a 99$ year subscription.. or even free with a 99$ subscription.
(Additionally, they could add in a BluRay drive for movie playback)

PS3 without BluRay player, 120GB harddrive
A console like this could basically do what stingray does, however, it would likely still be over 100$.

Or, they can just lower the price of the ps3 to 199$ and pack in like 6 games. :D

What do you think? Do you think Sony will introduce a competitor to Stingray? And in what form will it appear?