Why should Sony drop PS3 to $199? Dropping to $249 would be enough to price the cheapest bundle with Move at $330 or less, in line with most other bundles, so avoiding any risk of making it unattractive.
But about PSP, how could it sell for more than $99 once DS drops to that level? So, once 3DS launch date is known and so DS' drop too, anticipating it could be a good move. And when DS, with its two screens, will be profitable on HW at $99, PSP will be too.
This doesn't exclude offering also PSP-phone, PSPGo and possibly other premium models priced higher, obviously, but if the competition has an entry level under $100 and if it's possible for Sony too to price a model under that threshold, not doing it would damage sales.







