Originally posted by Adam I'd say that $1299 is still pretty good value alongside the K-5 IIs's $1199 last fall, but you're right, it needs to go lower in order to compete. And Pentax's high lens prices (which are about on par with the competition now) aren't helping their cause as a value brand.
It's already down to $1170 for the body at Amazon so hopefully Pentax has realized that it needs to be around the D7100's price point. I would have picked up the K-3 if Amazon had a lightning deal on it for $1K....they had a crazy lightning deal on the D7100 body for $699 that was sold out fairly quickly and I was tempted to get it to try it
And I think Pentax's "value brand" image was killed off when Hoya cranked the lens prices up for what arguably are less sharp across the frame than their competition. Nikon has really raised the bar when they released the 24-70/70-200 and subsequent lenses (except the 55/1.8 which is a dog)...they were even sharper than Canon who also had to redesign their 24-70/70-200 to compete. They even forced Sigma to up their game, though they've only been really good at primes (their zooms are still weaker than Nikon's lenses though better than Canon's previous gen of zooms)...