It is likely that the pricing may only apply to the Wi-Fi version, though Sony reps did not affirm or deny this, but they did note that there will also be a significant price drop in PS Vita memory to accompany the price reduction on the device itself.
The PS Vita has fought an uphill battle against the more popular Nintendo 3DS, while also attempting to keep up in a race against the increasing popularity of other mobile devices and smartphones that offer a more immediate casual gaming experience. Sony has announced that they are continuing to create partnerships with independent game developers in order to boost their library of casual games while continuing to target hardcore gamers that demand more intense gameplay and world building.