I think a lot of people are overestimating exactly how much the PS3 will cost to produce by the end of the year. At the beginning of the generation, one 60GB PS3 was estimated to cost Sony $840 to manufacture. Two years later, one 80GB PS3 is estimated to cost Sony $448 to manufacture. That's a difference of almost $200 per year! If Sony can keep redesigning the PS3 at even half the rate they have been over the last two years, then they could issue a $100 price-drop by the end of the year and still manage to be at the exact same point they are currently. And that's assuming that they only do half what they average over the past two years. Most likely they will be able to drop it more, which means that the PS3 would likely cost around $325 to manufacture by the end of the year, and that's still being pretty conservative.
I still don't understand how exactly people think Sony won't issue a price-cut by the end of the year.
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