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It says they may finally be able to break even this year and it goes on to ist the products that need cost down. Hard to say but I would imagine the 80GB would be the break even console considering that is what they are producing now. Sort of makes sense clear out teh more expensive units at additional 100 dollar loss. Sell a new model at break even get the sales spike after consumers by the remaining stock from the shelves not lose money and prepe for a larger price cut next year.

I don't see MS cutting their costs until an honest permament price cut by Sony.