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I think they have to view it as an opportunity more so then a worry. The PS2 was $100 more then the Gamecube at one point I believe but still sold a lot more then it at the time - simply cause it was a product people wanted more. The 3DS hasn't been a hit thus far and is on the end of a lukewarm reception - Nintendo are cutting the price to get things back on track, but they've derailed thus far and Sony have to see this as an opportunity to hit while the competition is weak.

I think the key thing to remember is, first year or so the two things arn't really after the same sort of consumer. I don't totally 'get' who Nintendo was going for with the 3DS (And still arn't really sure) but Sony feel very honed in on the HD console owners type market who buy COD, AC, FIFA, GTA in their droves. The hardware, software and extra features are well suited to appeal to them - and this is an audience who I think will pay a premium gaming device they want... maybe not in their droves but plenty to get sales going for the first year after which Sony can then price match the 3DS.

So thus far things are positive for Sony, but they need to deliver on their end now.