To me, or for that matter, any intelligent shopper that ever researches any of this stuff, seeing a product I want to purchase take a sudden plunge in price of 200 dollars or so in under a year's time doesn't exactly persuade consumer confidence. A good product in the gaming community doesn't plunge downward in chunks, it gradually decreases. If Sony themselves drops the price by $200, sure it makes it more accessible to people, but shareholders and retailers aren't going to enjoy the fact that they bought a product at X price, it's sales have been subpar, and now Sony wants those retailers to take a larger loss on each console sold at that point.
100 dollars will probably be what you see, any more and you might raise some red flags with consumers or investors. Any more than that, and I would think that Sony must be very, very concerned with their future in the market.
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