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I highly doubt what everyone is saying about certain parts of the PS3 being removed. The whole reason the 20 GB was phased out was because it wasn't as popular as the fully loaded 60 GB which had everything. I think people believed that the 60 GB SKU was the standard, but the price is nowhere near where they want it.

Supposedly the PS3 costs $639 to make now, and if Sony were to make a real price cut on the 80 GB for $400, it would put them back to their original plan to sell at a $240 loss. They would lose a lot of money as originally planned, but technically they can do this. I hope for the sake of any potential PS3 owner that Sony is able to cut costs without having to strip anything else on the console.