when u say 199, do you mean £ or $? and either way, it seems a very long shot considering they can barely afford to drop it by $50. :s although if we hold hands and pray really hard, it may happen when the God of War hears our prayers.

What people forget to take into account is that the Wii probably costs less than 100$ to produce at this point (Estimates were it cost 200$ US when it launched). Ninty could easily drop it to 99$, or 199$ and pack in Wii Sports, Wii Fit, and a balance board and still make a profit. And a 199 PS3 wouldn't be able to compete. Also, Sony would be losing 200$ per unit sold.

When/IF the PS3 drops to $199 in a few years I can see a lot of people grabbing one unless Blu-Ray players somehow drop below $50 by then. But for me I rather pay the extra $150 and get some games. I also think when the PS3 hits $199 the 360 will be $100, and by then the 720 or whatever should already be out/just short of launching and I severely doubt Microsoft is gonna lose this gen.

yes...yes it would.

PS3 has no chance of outselling the Wii this holiday season. Even if they gave away for free all available PS3s that will still not be as many Wiis as would be sold.

The PS3 can't legally sell at $200 anyway because of copyright infringements so it's a moot point.

Even if they could legally do it, they couldn't financially afford to.

@tuoyo - you're showing your fanboy colors. That's an ignorant statement. Too bad you'll never get any truly good games on your Wii. At least 360 and PS3 have things to look forward to, what do you have...animal crossing? That's what I thought...sell as many as you want, I'll be having more fun.

To the OP: Absolutely not. Wii will win this gen. If PS3 went to $199, Wii would go to $150 or even less.  

This remains to be seen. I think the American numbers will be drastically shifted by the 360 price drop. November & December will be Wii>360>PS3 Worldwide. Japan will be interesting as well as the 360 has been out of stock and is now half the price of the PS3 and has the lion's share of JRPG's. I think M$ strategy might work and surprise the industry. I thought Sony could pull off 2nd this gen, but I have really lost faith that they can turn it around. If Sony can't compete with $199 by Christmas 2009 they might still get 3rd this gen.

I think people are forgetting some key points.

If PS3s are dropped to $199, like, next month, it's also likely that Wiis will drop to $49, and 360s to $9.99, but that sales of all videogame systems will be hurt as families turn to flying pigs for their entertainment needs.

To beat the Wii the PS3 would need a 250 pricetag.This is impossible in the short term ,but maybe if they can lower the price to 350 or 299 they can put a better fight and definitely outclass the 360.

You are a funny chap.  Wii can sell up to 10 million Wiis this holiday period.  Realistically we wouldn't expect it to sell less than 7 million.  That's almost half what PS3 has sold in two years.  Do you seriously think there would be that many PS3s available this holiday period?  I don't see how that could be possible and would be grateful if you could enlighten me as to how you see that happening.

And how do you know you will be having more fun?  How can you judge for me how much fun I will be having?  I am sure I will be having as much fun with Brawl, Galaxy, Mario Kart as you would with whatever is on your beloved PS3.  And I am pretty sure Galaxy is the most highly rated game this gen so you are showing your fanboy colours and ignorance with a statement like the one I bolded.  Truth of the matter is there is nothing on PS360 I am remotely interested in.  If Capcom refuses to give Wii a new Resident Evil then I will buy a PS3 or 360.  Until then I see nothing to make me think you will be having more fun.