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the PS3 will be 399 when they release the 65nm chipset and it will be either 100-160 gigs. ***read below for detailed explanation***

This will happen sometime next year or the year after. The PS3 and sony will be fine this holiday without another price drop this year, they'll end up in 3rd place overall this holiday but that doesn't mean sony will go bankrupt or go into panic as they'll have enough games to hold their own. When sony happens to release the 45nm (or 65nm, whatever it is) processor PS3, they will drop the 80 gig model to 399.99 or 349.99 while the 45nm processor ps3 will stay at 499.99. Once the 80gig PS3 is sold out, sony will drop the price of the 45nm PS3 to 399 or 349.99 during late 2008 to 2009. Thats what i predict

*****EDIT: due to some new found information, i updated this list*****


~2006~ november launch
20gig 90nm PS3 EE - 499.99 USD - Phased Out
60gig 90nm PS3 EE - 599.99 USD
~2007~ July 12
60gig 90nm PS3 EE - 499.99 USD
~2007~ August
60gig 90nm PS3 EE - 499.99 USD
80gig 65nm PS3 no EE - 599.99 USD
~2007~ end of 4th quarter to early 2008
60gig 90nm PS3 EE - Sold out and discontinued
80gig 65nm PS3 no EE - 499.99 or maybe 449.99 USD (announced during TGS)
~2008~ 3rd quarter to 2009
80gig 65nm PS3 no EE - 399.99 or maybe 349.99 USD
~2009~
80gig 65nm PS3 no EE - Possible 50 dollar price drop, but we will see more bundles from sony to increase value (GT5 bundle at 399.99 or 349.99 is what i believe will most likely happen)
~2010~
80gig 45nm? PS3 no EE (newer model, reduced size and slimmer) - 235.99 to 249.99 by holidays

 This is my (UPDATED) prediction, what do you all think?