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Sony only dropped the price to $400 in 2007 to win the HD format war. They seem less interested in marketshare and more in reducing losses now that HD-DVD is dead and buried. If HD-DVD still existed, the PS3 would be in the $300-$350 price range right now. Sony must see more profit in Blu-Ray than Playstation. Now that their is $200 Blu-Ray players on the market they dont need to worry about expanding the BR install base via the PS3.

Just a thought.