Not that different from the $180 DSi -> $250 Wii, really

The PSPgo is the premium version of the PSP, whereas the $299 PS3 would surely be the cheapest version available.
I don't see anything wrong with that, because there will be people giving a high value to the mobility that comes with the new form factor and not having to lug UMDs around.
Once the early adopters/gadget enthusiasts market will start to show diminished interest, the PSPgo will surely be re-positioned, and eventually the old PSPs will be retired and the go will fill all layers of the market.

Basing the price cut of the PS3 on the price of the PSPgo is quite a weird idea. The price cut of the PS3 will have to deal with the PS3 own problems on the market and its positioning. A $50 cut just wouldn't move it close enough to the sweet spot for the average console user, that was about $250 in the past.

IMHO, it is sensible from Sony to make the PS3Slim the more expensive model.  Due to cheaper components, the PS3Slim is cheaper to produce than the normal PS3 at the moment, so if they reduced the price of the 80Gb model to $299 and reduced the 160Gb model to $399 as well as introducing the new PS3Slim at the $399 price point...then there would be a $299 model on the market for the next 6 months or so...while some people will want the PS3Slim and pay the extra $100 for the bigger drive and smaller sleeker look...thus Sony make money and a decent return for once.  By the time they phase out the 80Gb PS3, BR drives will half in cost, thus allowing for even more return and allowing Sony to then reduce the PS3Slim to the $299 price point next year.

It is sensible for Sony to have 2 PSP models and 2 PS3 models.  The cheaper PSP and PS3 at $170 approx and $299 and the slimer new models with PSPGo and PS3Slim at $250 & $399 respectively.

Sony selling the PSP at $249 is bullshit. The old PSP is selling at $199. How are they going to beat the DSi, by selling a dumbed down version of the PSP at a higher price than it is now? The DSi is $169.99. Sony thinks too highly of their products. There is more reason to buy a PS2 than a PSP.

Why is the PSP 250????

I think it goes better than DS Lite for $129.99 and DSi for $169.99.

@ S.T.A.G.E. )

Sony can't use the "sell hardware at a loss and make money with software" strategy with the PSP, because it doesn't sell enough software. I think that's the reason the PSP Go is 249.
It's manufacturing costs should be lower than the PSP-3000's (if manufactured in the same quantities), but it has to redeem it's R&D costs first.

Yes.. they overpriced the PSPgo so everyone will buy a PS3 so sony will make more money!

Whats different about the older PSP and the PSPgo?

Guys the PSP GO! is priced at $249.99, when it probably costs Sony $100. Anyways Sony needs some profits right now, and the PSP Go will bring them loads of profit if it sells right.

The PSP Go will be expensive for a short while just to milk as much money as possible from early adopters. Look at the original iphone. It came out at $600 and now is literally 1/6th that price.

When CD players first came out they were like $900 and that's in the early 80's. In current money that's almost $2000. Today you can get a CD player for like literally 10 cents.

The PS3 has been out for 2 and a half years. There are no early adopters to milk. I do think they could make the "slim" PS3 cost a little more then the phat one and milk that for 6 months to a year.