250$ would be amazing for us consumers. 100 bucks more for the 3G version sounds reasonable, as well.
As for putting heat under Nintendo: What Sony needs are mass market games. They can price the hardware as low as they want, the combination of Mario Kart, Mario Bros. and Pokemon is extremely powerful. Nintendo dropped the price of the original DS when the PSP came out, they will make sure they are the cheaper alternative once Sony releases their handheld.
Watching both companies grow the market would be better than watching them fight over the same market.







