New systems only cost 200 msrp, and you can get them for as cheap as 160, and often come with a couple games AC1 and BD were both available for 10 new, and the only reason they cost more now is they are old enough to get harder to find.
This would also include a 3 year warranty.
He should come *way* down in his price, unless he still has almost all 3 years of warranty, or unless you feel like doing him a favor or don't have the additional $60 to get a new system with full warranty.