No no..the E3 announcement that was made in 1995 was as follows.
Steve Race, SCEA, "$299."
This was shortly after Sega announced that the Saturn would be $399. They later lowered the launch price to attempt to match Sega.
Trust me...I was in the audience when it happened and I was one of the ones clapping.
When they announced $199 the next year, the same scene was repeated. :)
EDIT-BTW, remember that the XBox is locked in and ready to ship. The PS3, however, is numbers on a paper and can change repeatedly up until its eventual launch, which might not happen until 2007. Awfully hard to compare theory to reality.