When Sony announced the T1, it tried to line up its price against the competition, however with the floor on the market effectively dropping, it is continuing to struggle in the ebook reader market. What was a $10 difference in price over the average, has now widened to as much as $60. Presumably due to this, and the postponement of the Harry Potter ebook sales, Sony has now lowered the Price on the
PRS-T1 to $129.99$99.99, and also, through the end of the month is offering up to $50 trade in credit towards the T1 through their
trade in program. Note, that this only applies if you trade in an ebook reader from a select brand towards it. This effectively lowers the price to $79.99, if you're willing to trade in a functioning reader.
It should also be noted, that they lump Kobo under "Borders" as the brand, and only are offering the Touch as a trade in offer. This is strange, since, well, Borders was a retailer for it, just like Borders was also a retailer for Sony readers.