It'll actually cement its place in 3rd for this console race.
If it can't seriously damage (and I mean seriously) the PS3's momentum with a 199 price point, then its screwed, there is nothing left it can do. The PS3 still has a very long way to go to 199, and its all uphill sales from there.
I doubt it will do enough damage to the PS3 to really make any difference. Just look at Europe where the 360 is cheaper than the Wii and it sells pretty horribly considering that.
All this will do is delay the inevitable overtaking of the 360 by the PS3.
As in go buy us some coffee.
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