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If they do sell at that price, Sony will still be selling the PS3 at a loss and I'm not sure how much more they can take. Even though Sony did say they managed to drop the production cost of the PS3 by roughly 70% (amazing), I'm still not sure they can manage a $199 price tag. What I think Sony needs is marketing, I mean, OMFG, their marketing has been from very little to non-existent; I'm happy to see they are finally picking up on this. But yeah, at $199 they could close the gap significantly, and more PS3's in peoples homes would solve many of their problems, especially the whole lack of major third party support.