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A $199 PS3 and a $249 PSP Go...... Hmmmmm Yeah never gonna happen.

First, the only time a $199 PS3 was even mentioned was the stupid joke by David Jaffe which he pronounced as such.

Second, the now ~$250 production cost (if it is that low. still no confirmation) could only possibly be for the upcoming Slim models, NOT the current 80/160gb fats.

Third, you have to account for them selling the consoles for less than the retail price to the actual resellers. Even if the cost of production for the Slims really is as low as $250, they have to sell them for about $15 less each to the retailers. Then as someone has mentioned before, this does not include the costs of packaging or the added controller. If Sony launched a $300 Slim, they would have to sell it to retailers for about $285 and after the other costs are factored in they would just be breaking even per console sold.

And I still don't believe Sony is producing Slims at $250 a pop. They only gave us a "rough percentage" based on an initial cost we can only estimate. After all the reductions to make a slim, it seems they would still be about $25-50 more than $250, so about $275-300 to produce rather than $250. I guess we can only wait for some final confirmations and clarifications.