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Being that the Emotion Engine was 1 chip in a $100 system that Sony is turining a profit on I highly doubt that it has a cost of $75 ... Back in the day, when Microsoft and Nvidia had their falling out, Microsoft was only paying $12 for the GPU in each XBox when they were supposed to be paying $17 (If I remember correctly, I could be off by a few dollars) ... If I were a betting man, I would say that dropping the EE is saving Sony $15-$20 per PS3