Whilst sony would love to sell 30 trillian consoles there first aim to is be profitable.
If sony are smart they'ld start with $349 with a further cut down to $299 in november.
$199 is stupid financially and mightn't work, look at MS their most sold model sells for that price yet they shipped only an extra 100k consoles over the last 3 months vs a $399 console!!
yeah now caomparing it with the 360.
For yuor clarification,all of the hardcore MS fans already have a 360.Most of the people now buying the 360 are causuals and buying it cause it has a low price.
In PS3's case alot of hardcore fans still has to buy it and are waiting for a price cut.Its brand name is much more stronger than the 360 overall.
Actually, for both your clarifications, the $300 Pro 360 is the top selling model, not the $199 Arcade.
Also, it is the PS3 who lacks any future audience. The majority of the PS2 audience was casual. All the PS3 has this generation is Hardcore because casuals go for price first. That's why the 360 is selling better. It gets both Hardcore and Casuals