Many people are still forgetting that during launch,even the 360 was just as expensive as what the ps3 costs right now. Yet people still are quick enough to demand price drops for a machine that won't crapout unlike the other. This is Sony we are talking about. If one could afford a $400 360 back then (1-2 years ago), they can most certainly afford a ps3 at this price.
You have to decide for yourself on how you plan on utilizing it and for what.A blu-ray movie player or a game machine, or both? Even for the $400 price tag, they are given you more than what you can bargain for.