Of course, we all know why Google is lowering the price. The so-called Nexus 5 smartphone is set to be revealed in the next month or two, so they need to get rid of the "old" stock of the Nexus 4. Remember that this phone is certainly no slouch with its quad-core processor, 2GB of RAM, NFC, 2100mAh battery, wireless charging and 4.7-inch 768p (320ppi) IPS touchscreen display. The pentaband radio means that it'll play super friendly with just about every GSM carrier, including AWS providers like Wind and T-Mobile.
The $199 price is for the 8GB version of the Nexus 4, bearing in mind that it does not offer microSD expansion. If you want a bit more space, the 16GB version has received a similar $110 (Canadian) price cut, bringing it down to $249. You could wait and see what the Nexus 5 brings to the table, but at less than $200 outright, the Nexus 4 should not be ignored.