$200-300 is expensive no matter what Sony\'s target audience is for the PSP. Now, unlike some of the people here that say it is suicide, $200, while it is expensive, you have to remember that the PSP is a powerful system compared to, say, the GBA or even the N-Gage. If the price is $200, it is even cheaper then the N-Gage (at $300, it isn\'t. But even at this price, PSP is still a powerful game system and promises games that look a lot better).
I\'m not saying the PSP will succeed at $300 or even $200. Just saying that it isn\'t suicide either. AND, if Nintendo does follow with this, Nintendo DS (and have this as its competition), then Sony could very well do just fine with the PSP.
Now we have to wait for what the games will look like. Support for the system (which it appears that Sony IS getting) is very important no matter what the price is.