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Kasz216 said:
Sounds bad to me... since it was recently announced they were still taking a loss on hardware.

But die shrink is just one of the ways to cut HW costs, so this will help.  And in 9 months HW costs will be lower also without die shrinks: if you are talking about a shorter term, well, I agree that for Xmas they can only afford a $50 price cut without costs skyrocketing, but given the current good sales, such a cut should help enough, if they feel the need to do it. And Sony could easily afford a price cut in Europe, where price is inflated applying a parity €/$ that largely exceeds VAT difference, should they do it they'll greatly increase their market in european nations with lower average income.

 



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