There are various perspectives, in terms of value and technology being offered the price is very low, even lower than actual costs.
It's a super pricing for people interested in HD entertainment content. Best quality living room technology for a very affordable price.
It's however too expensive for most to give as a birthday or Christmas present to their young kids. Also a HDTV and an internet connection makes the console provide a much improved experience, but not many kids have those in their bedroom neither.
A cheap slimline PS3 is needed to tap this market segment.