I believe that a 199 price point will achieve roughly the same impact as the 299 one.

Depends when the PS3 get's there. If Nintendo or Micrsooft still has no new console out when the PS3 hits $199 then it's quite obvious whats going to happen to PS3. But if they do come out with a console you never know it could be like the Wii releasing at $249 that would really hurt PS3 sales. People would probably be more then likely to pick the next gen console over the current gen even if it's $50 bucks cheaper. So it depends, there's to many variables to consider.

You're wrong there Source.

I just checked online and saw this - http://www.walmart.com/ip/White-Wii-Console-w-Wii-Sports-Wii-Sports-Resort-and-Wii-Remote-Plus-Wii/15220287

The Wii is below $200 and comes with 2 games, 1 of which is $46 standalone. It's been below the $200 mark since 27th September 2009.

I also saw this - http://www.walmart.com/ip/Xbox-360-4GB-Console-Xbox-360/14917960

And this too - http://www.microsoft.com/presspass/press/2008/sep08/09-03Xbox360PriceDropPR.mspx

The Xbox 360 has been below $200 since 2008.
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Your point on PS2. No. Because it has no new games releasing for it and it's now over 10 Years (2 generations) old with its successor already on the market along with other companies successor's.

The PS3 on the other hand still has plenty of big (and small) games releasing for it in the near and distant future, keeping the system fresh. It's not even 5 Years old yet. Hitting $199 (Which could still happen this Year), would do big things for the console.

The 360 was 199 with it's arcade version, and the Wii still out sold it at 249. The 360 is selling only now because of a new reliable slim model, and Kinect. Even it the PS3 hits 199.99 there is still no guarrente it will sale huge. Despiste all the new games that are coming out for it. Those games are not good enough alone to  get people interested in the PS3 brand. You have those broke people who can finally afford one. Still by now most people who had interest in a PS3 in the US. May have already jump abroad with the 360 since it already  199.99. So it will help some, but nothing like what it did for the PS2. That system had all the games plus the price. The PS3 has some of the games, with the 360 having some also.

I definitely agree with you here...and I would also add threats/competition as having significant potential influence on demand.

When you say everyone knows that once the price is 199 that most of its sells come after that who are these everyone or is the "one" part of everyone the key?

I think it can do very good with the mass market in EMEEA and Japan. Not Americas. Many PSfans went for a 360 and are very happy, so they don't need a PS3. While, Japan and EMEEA still prefer PS.

But Wii and X360 also can get their respective price cut/ release sucessors, so I don't know in that case the sales performance for PS3.

360s game flow is dying pretty hard everything releasing now is multiplat crap or gears/halo ps3s exclusive support is increasing it's seeing more 3rd party devs now then it has in the past and Sony is going all guns blasing a total of 43 ps3 exclusives are listed as 2011 releases in NA right now and I only see about 3 that are likely to get delayed and I can see a few jap ones getting ported that aren't currently mentioned so yeah even at a higher prince point people with opt for ps3, not to mention blu ray is increasing in popularity and people with think I can get a blu ray player for 100 or a ps3 for 200 

I think u hav to take in count others competitor and the age of the console

sure PS3 will reach 199$ but it will be very late in the console cycle and the competitor will already be under this price point. Even if this console cycle will be longer than the past one, it is obvious than a LARGE part of the "final" (counted at the end of the gen) user base has already purchased the console. Thinking that less than only 20% of the "final" user base purchased the console and that 80% are going to buy under a 199$ price point is kinda ridiculous.

So, with a 199$ price point, ps3 sales will improve but just a little bit compared to what this price point did in the past for the ps2 for example.

Not everyone lives in America

For some territories 300$ can be a half of monthly salary (minimum salary in Poland is 350 euro, average is 800 but people in student age often get 500-600) and there are places in the world where people are lucky to get 200$ per month.

Also lower price point makes it easier to buy it as second or third machine for hardcore gamers.