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Simple. They have managed, or will manage, to cut the production costs. As they can't afford not to cut the price, they will do it. And why can't they afford to keep the current price? Well, they've already lost much money and probably aren't making too much money on games yet. They've always relied on games and probably will now, too, once they decide they're not losing too much money with hardware. Also, they want to keep the PlayStation brand strong and make Blu-ray succesful.