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z64dan said:
The problem for Sony right now is, they have ALREADY made like 5 or 6 million consoles with the old hardware price (~$750-800) so they need to sell those consoles (which are currently on store shelves / in warehouses) before they can realize the gains of their improved costs.

 Yeah you've hit the bulls eye with your post Z64dan. They have to clear out systems manufactured at the higher price before they can even being to see the benefits of the lower manufaturing costs. They have made significant progress but they are still far from the mass market price point they need if they want to suceed. I don't see the PS3 hitting a mass market MSRP before the 360.