I actually predicted most of it not the exact numbers, I was a little low on the Wii and a little high on the PS3. I actually expect by the end of this gen to be dominated by Nintendo and Sony not for Microsofts lack of trying but simply because the 360 seems to do really well in America and not so much anywhere else.
Yeah PS3 can drop to 299.99 if Sony doesn't want any return into the multibillion dollar investments sure. The problem is if they drop the second they can they will delay any return. Nintendo on the other hand could probably drop the cost up to almost 100$ immediately. A price war as it were could not work in Sony or Microsofts favor as Nintendo has a lot more room to do it comfortably.
At launch I've heard it said that Nintendo wholesales Wiis for 195.99 earning around 45$ per system thus retail markup it around 54$ that's 99$ over cost per purchase at launch to which I'm sure they're slightly cheaper to make today as producing more generally cheapens the cost of putting each individual together.
