Almost all the components in the PS3 are manufactured in China these days (a few parts from Taiwan, a few from Japan, etc.). Think Chinese yuan, not US dollars or EU euros. The exchange rate of the yuan has been broadly stable vis-a-vis the dollar, but has declined slightly against the euro. Given this, plus continued cost reductions and ultra-cheap BluRay diodes, Sony has room to cut the PS3's price.
But they haven't, which stuns me. We're headed into the worst global recession since the 1930s, raw materials and energy prices are falling, and consumers can't afford expensive equipment. If they don't cut the price at all this holiday season, that will be the third-worst corporate decision ever made in videogame history - the first being Microsoft's RRoD and the second the lack of BluRay support in the X360.
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