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I would expect the new 80GB PS3 model to get a $50 price cut for the Holidays. Shrinking the Cell and GPU, smaller heat/power requirements, combined with no BC and cheaper Blu-ray drive prices should allow them to about break even on this model.

I would expect a 160GB model, hopefully with BC still, at $450 as the second SKU.

People swore Sony could not possibly have a price drop last holiday season, but it happened anyway.