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This is the best offer so far. $399 is nothing. Seriously, you buy a system for at least 6 years. Six long years with great games. $399 isn't a drama when you consider what you gets.
 
For some people it's still a lot, for some others definitely not. I think both haters and supporters agree there wasn't better offer for gamers who reflect on PS3 so far. There is still a former model (cheaper) and the new one. You buy great, reliable and cheap system and you have an impressive gamebase to play. Steady stream of new games to come. No need to bitch around. Market will verify this decision. IMO we can expect permanent boost in sales. Permanent.
 
PS3 needs to extend userbase. Right now it's not about beating X360. As someone pointed it will take years even with extremely solid sales. It's about creating a userbase which secures support of third party developers. The truth is X360 can't lose right now even if it will finish on the last position. Developers need both systems right now. PS3 alone is extremely weak. It's pretty clear when we consider launch figures of games like Warhawk or Heavenly Sword (<100k). Purchase power of X360 owners is enormous. PS3 will build such power too but it takes times and new price. This is the new sku.