I agree with your analysis, I think Sony will be willing to sell at a loss (very small one), and they will take the cost of shipping, manuals and so on. They will try to sell it for $350 to the public (remember the price to the retailer has to be 20-50 dollars less).

I am a little more worried about the price of the games, developing a game for a high end machine is expensive, now add the cost of manufactoring the game cards and we can expect game going from 40-60 dollars, and that's very expensive for a handheld device.

Sony should not be stupid enough to make the same mistake twice in such short period of time. I'm not concerned. We should see an SKU with $299 price tag at most. i believe so.

I'M MORE CONCERNED.  ah damn work makes me keep caps on

but i'm more concered about price of GAMES over the systems price.  the system will always go down in price eventually, and if you do buy it, it is a ONE TIME cost for what 10 years or whatever.

But games if say $10 more each game is spendy.  hell thats why i own a crap load of wii games and yet barely and 360/ps3 games.  i just rent most of them.  besides teh fact that it seems as graphics improved game length decreased and add in multiplayers these days there is barely any game on those systems that you can't beat single player in the short rent period. 

i think thats the gaming industry's biggest worry.  Game development costs increase with graphics. game length decreases due to time constraints.  and price of games has risen.  So we have a pretty game that is short and expensive.  Unless there is amazing multiplayer and that multiplayer is better than the competitors what is my incentive to buy over rent?

Yes. I'm concerned aswell as the PSP and PSPGo were way overpriced in my opinion. I predict that it will be about... £250 or something like that. Not a day one buy for me.

i'm banking on it being 300 for at the least the wifi only version

Penny-arcade weighs in

[Warning language]

http://www.penny-arcade.com/comic/2011/1/31/