First of all, no. They latest revision that may have happened towards the end of last quarter, early this quarter... or not even out yet (if people saying that he may be relating to the slim are correct), isn't the first revision since the console's launch, it's had numerous revisions, so, no it didn't have 70% of costs shaved off in one night.

Second of all, the previous quarter's costs would have increased due to an increase in R&D for numerous projects that have going on, and which aren't being sold. You also have to consider that they're currently manufacturing a load of PSPGos and (potentially) PS3 Slims that are just sitting in warehouses waiting to be shipped to stores.

All the consoles currently being sold are all pre-revision models, so they are still losing the full amount on those being sold. One predicts that if current rends hold true, and this is just your standard revision (ie - not the slim, or anything), that it will take a few months to sell through the stocks of old models and the shelves start filling with the models that Sony are profiting from.

Depends on what is removed.

Could be an dumbed down "arcade" version, without the HDMI and other stuff.

Wireless connection?

Some USB ports?

Im not sure on what they could do, but im sure there are quite a few stuff that aren't fully essential.

I smell a price cut.

retailers don't even dream about making that much. They only make about $10-$15 per console for years now even software the only make about $12-$15 for a new game sold. The real money is in the accessories and peripherals.

I concur with The Thunder.  Retail does not mark up hardware more than a couple % tops.  Software markup is typically around 30%, however.

The PSP Go is about the only console that will ever make the retailers a profit, on hardware, and that's because they won't sell it unless they can mark it up -- because they don't get to sell software for it later.

You guys thinking it will be "dumbed down" are ridic. I've been saying all along that sony could shave 150 dollars of with just shrinking the cell and RSX. They don't need to dumb anything down in this situation, it's simple mathematics.

Proc and TheThunder - But for such an expensive console a small % is actually a lot of money. This is why percents mean shit. The smaller the number the bigger the percent. the bigger the number the smaller percent yet it's bigger.

For console hardware, we're talking like 2%, not 5%.

That's $8 on a PS3, only.  The retailers want to sell consoles as badly as the manufacturer does, and for the same reasons.  Marking them up more would be foolhardy for both parties, when software/accessories is where the money is at.  Keeping the price as low as possible on the former, yields the most sales for the latter.

I doubt it's as small as 2% ask outlaw. I believe he works at gamestop and he said 5% I know MM works at one.