Hon Hai Precision Industry Co., Ltd., one of the world`s leading manufacturers on electronic manufacturing service (EMS) basis, recently joined Sony`s supply chain to deliver Play Station 3 (PS3) consoles, according to industry sources.

The sources noted that Sony has set a shipment goal of 10 million PS3 consoles for the first quarter of 2008. This means fierce competition in the global market for game consoles and will lead to a boom in the sector making consumer electronics.

Insiders in the sector said that Sony has cut the selling price of PS3 consoles, and, at the mean time, planned to launch low-price models, with ASUSTeK Computer Inc. and Hon Hai Precision to supply the models. Read Full Story >>

I am getting tired of these stories.

Souds kinda legit..... in a maybe sorta way.....

Unless I'm completely missing something, this just means that Sony is transitioning some of Hon Hai's production capabilities from the PS2 to the PS3. This was inevitable because sooner or later, PS2 sales would start dropping.

This is news, but not the kind of news most of you seem to think it is. Companies do this sort of thing all the time.

so,that has nothing to do with a "Lower Priced PS3 Coming"

Am I wrong ?

No, you're right. There is absolutely no mention of any kind of price reduction in the article, nor would there be any. Sony is simply diversifying their manufacturing base in China. Extremely common stuff.

It may...this company can probably build the PS3 cheaper than sony can, therefore reducing Sony's cost per unit. This is one step in lowering the retail price. I think we will definitely see a $500 80GB ps3 by xmas, and the rumored 40GB, might be legit as well.

Sony never manufactured the PS3. It's always been contracted out.

One thing I don't understand is that Foxconn was a PS3 producer. Foxconn is the same company as Hon Hai. So I'm not sure what is different other than the name, since it's the same company.

I think Foxconn is a subsidiary of Hon Hai and they use different manufacturing lines in different cities. I remember reading up on quite of few of these massive Chinese companies when Apple was transitioning their product line a few years back.

Foxconn is the Taiwanese trade name for Hon Hai.

http://en.wikipedia.org/wiki/Foxconn