A price increase of that magnitude is definitely not a good idea. One of the points so many DS/PSP fan boys made in the Pandora topics, is the price difference of the Pandora vs the DS/PSP. Ofcourse,
we know that the hardware is not sponsored with high prices on the software, but most of the general public ( a market the Pandora may want to tap in more ), does not know that ( or are to blind to see ).
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so € 66,-- is a dealbreaker for you?
Remember, thats the price of 2 rather good brand class 6 ( 15MB/s ) 16GB SD cards ( at this moment in time ).
Don't forget:
339 dollar -> 264 euro's ( no tax inc )
+ Tax ( lets take 19% ): 50 euro's
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= 314 euro ( inc tax )
+ Transport! 14 euro's
+ 1 SD Card ( useless without one ): 30 euro's
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358 Euro ( thats 456 dollar, for you US people to compare ).
And thats just with one SD card, not two, and no extra's like the s-video cable etc.
For a portable gaming console, thats going to scare a lot of people off. Especially, when they compare the price with sponsored hardware like the DS/PSP, coming from a firm with no name/brand, and no "real" software portfolio of any meaning or brand recognition.
In other words, by that time, the Pandora already needs to have more trophies to get people to shell out that amount of money ( and a better PR focus ). Aka, if for instance Doom 3 ( or any other game with name recognition ) was running on it, now, thats going to bring the pandora to the attention to a lot of people, but they are still going to question such a big price.
For use "grownups" with cash to spare, it might not be as bad, but still, most of use will think twice