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I think $250 makes sense from a business/finanical perspective. With the recent DS price cuts and the reveal that some more mid-sized DS games are still being made, the DS could still continue to sell as a viable alternative for some time with the 3DS at $250. Along with like others have said, it makes sense to price higher until level of demand is discovered, unlike the Wii which was sold out for so long. But I think If the 3DS comes in at $300 that just opens up too much room for the PSP2. I think the 3DS would be fine being the same price as the PSP2 or even $50 more, but if it was $100 more, I think the PSP2 could really increase its marketshare.