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PS3 cannot afford to get to 199$ so why should they be concerned about that? Also, if the majority of their sales are people backing up their 360 for a RROD - or replacing them, then it makes the attach rate for the 360 even more impressive than it already is.
Point of the matter is, while the PS3 is a terrific system by itself - the 360 offers that affordable middle ground for those who want a console without motion controls at a lower cost. They are always lower than the PS3 - always one step ahead. They've made Sony burn their profits in order to KEEP UP.
Now that the 360 has a new model, a good chunk of that ground made up with their new model AND price drop, is dwindling away again - and the new 360 isn't even released in Others yet. Sony is going to have to do anything stunt they do not want to do - b/c of Microsoft. More lost profits. You think they're doing all of this because they want to? lol --- time to face it. Microsoft and Nintendo are dragging the former giant through the dirt.
When you have to chisel out 2nd place with what Sony has dished out over the years, you know they're disappointed.