It's still not at the sweet spot of $200. At least in NA, that's the price people will pay for gaming consoles without thinking twice. The Wii is $50 too high, but Demand >>>>>>>>>>>> Supply, so whatever.
Assuming the $400 model is real (until Sony says so it's a rumor. Sorry) and they release it, it will barely keep them alive and not move much. The X360 has claimed the $400 bracket and Sony won't get much of that.
Nevermind that they are (almost) feature equivalent. Basically, you're buying the PS3 for its unique games, a strategy that didn't help Nintendo during the N64 or Gamecube era, even though they were competitively priced (much cheaper for the Gamecube, actually) and hovering around the sweet spot of $200.
There is no such thing as a console war. This is the first step to game design.
