I dont know if this will happen specially comming from HHG but Sony does expect to sell 15m ps3's according to their last report so IF PS3 does drop to $199 then this holiday is gonna be fun.

If the claim had been $249 more people would have bought it. I think $249 120Gig (unless it's replaced by 160Gig WW, still at $249) is on the cards, and is almost essential to make the 15 million projected.

Their industrial espionage was obviously rather poor in terms of not factoring in a 360 re-design  and possible 360 price drop in making their projection, if they plan to stay at the current price through to 2011.

I think Ninty will go down by another $50 this year too. Their 2009 $50 price cut has worn off and they will soon be negative compared to last year, and without a $50 price cut at about the same time their numbers will drop away a lot YoY.

and I thought Sony wants to make some money...

Well they are replacing the current 120gb and 250gb in JAPAN with a new model of $160gb white ps3 and a 320gb standard black PS3 in JULY 29, currently no news if it will hit U.S and EU tho but this could be a possibility I guess, $199 to clear the 120gb ps3's?

http://www.psxextreme.com/ps3-news/7388.html

40gig entry model, with external psu and no wifi, they could get it to $199

Not sure Sony wants to play it that way. We know its a trap but it works well. Cheap console but you end up paying more when you upgrade.......

Unless they remodel again i think a $100 price cut is just to much, $199 would be the perfect pricepoint though.

Another remodel? not a great idea to do it so frequent.

I meant more like a technical remodelling, not the shape. Maybe slimming down one or two chips again, or a model with a smaller hard-drive etc. But even then $199 doesn't seem achievable.

Maybe offering a $199 PS3 if you sign up for one year playstation network plus (costing $50 so basically $250)?