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HappySqurriel said:

it is quite likely that a $150 XBox 360 Arcade or a $250 Wii with Wii Sports and Wii Fit are far more attractive options to the gamers who have yet to buy into this generation than a $300 PS3.

360 is a mere 50 away from that, if it failing at 200 it will fail at 150.  Especially since the arcade sku is a joke.

wii and waggle are attractive options to moms and kids not typical gamers.  I know plenty 25/35 years olds that will buy PS3 at a cheepr price.  400/500 is just tom much at this time. 

360 is already cheepest by alot and it failing quite bad by struggling to out sale a much pricer product.  At 200 less 360 holds a small sales advantage, at 150 it might not even exist.  Can't escape that.