My guess is $200 since my Sister got a squire and a cheap amp new for $200 (Canadian) area. And since they remove the two? tone knobs in place for the d-pad and buttons, I'm sure it would be silghtly cheaper/same cost as a retail guitar. Of course this is just speculation untill official release :P
The press release said the midi adapter would be keyboard, and drum compatible. no mention of guitar however... Although my guess the squire will be in the $200 price range. awesome demo btw, definitly kicks Power Gig in the face (untill we see actual gameplay at least)
if they really are using piezo pickups in/by the bridge and a midi interface I would be shocked if it was only 200. The midi setup alone would cost at least 150, and 250 for a nice one. I'd also find it extremely hard to believe since the regular 5 button Fender Replica is 299…