robatw said:250 in europe = 367.03US$
expensive...
It's actually closer to $300 after you factor in the VAT. Every thread EU GAF forgets the VAT.
SCEE usually bundles in more games with hardware where SCEA does not so you really don't pay as much more as you think you do.
Also: $600 smartphones are selling like crazy so of course a handheld can be successful at $249. Hell the ipod touch is already hugely successful around that price point.