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Over 75% of consoles in the previous generation were sold for $199 or less, and regardless of whether Sony drops the price today or in 1 year there is little chance that the PS3 will be $199 or less before holiday 2010 ...

The days of the PS3 being a cost competitive console ended when Sony came to the conclusion that people would get a second job to buy the PS3. At this point in time Sony really has to focus on making the PS3 worth the added cost by developing a large library of exclusive games that show off the benefit of HD consoles ...