I'm thinking with all the stuff that happened with PSN, they have to get some good news circulating somehow and there aren't many better ways than system price drops right? 
So, is that just me being hopeful around E3 time, or do you all think this could happen?

They are not going to do a price drop. They recently started making money with the PS3, they aren't going to take a step backwards and hope consumers make up for it. 

I doubt the price will drop anytime soon. Also, there's already a topic about this.

There's some evidence to support this theory.

Lots of gift card deals with purchase of a ps3 in the last weeks, good indicator of either a new model or drop.

And then this. Many people speculated 360 would go first then the ps3 would follow. The web page was changed back to $400 now. http://www.target.com/Video-Games/b/ref=nav_t_spc_13_13?ie=UTF8&node=1042122 but the "great timing" part made it seem suspicious. A price drop is probably going to happen for both systems, but e3 might be a bit soon.

I doubt it. The price they got going now is fine.

There's some evidence to support this theory.

Lots of gift card deals with purchase of a ps3 in the last weeks, good indicator of either a new model or drop.

And then this. Many people speculated 360 would go first then the ps3 would follow. The web page was changed back to $400 now. http://www.target.com/Video-Games/b/ref=nav_t_spc_13_13?ie=UTF8&node=1042122 but the "great timing" part made it seem suspicious. A price drop is probably going to happen for both systems, but e3 might be a bit soon.

It could. Nothing is set in the stone tablets of pricing. A $199 price, if they could get the machine that low puts it in the realm of typical BluRay players and would make the thing a complete beast. More likely I'm expecting some PSP fire sales after this conference. They're already down to about $125, new, unless you're after the GO model, but the new hardware cometh and that more than anything always drives prices down. 

I'd buy one for $10 :o

A lower price would definitely help me get back into the playstation rat race 

I doubt it!