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$350? Would be very nice for me as a customer. But I don't think it will happen. IF they launch it for this price they would have losses of $250-$300 per console, which in their weak state...isn't optimal. I also think Nintendo would make profit off the WiiU by then, allowing them to slash the price of the WiiU by $50. With the 3DS printing money and their mountains of cash THEY could afford taking further losses, Sony most likely couldn't. And if the WiiU happened to have an AAA release at this time, sales could explode like with the 3DS.

->tl;dr: If PS4 launches for $350 Sony loses mountains of cash and indirectly helps the WiiU.