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One of the best ways to reduce manufacturing costs would be a slim model. I just don't know if it's possible yet... Anyway, I'm sure they're looking for a way to release a SKU with even less stuff to save money. Dropping WLAN would be the first thing but it's pretty hard to think of anything else. Of course they could drop the price of the worst model with no WLAN and a 80GB HDD to some $329/399€ and drop the price of the main SKU with WLAN, a 120GB HDD and a HDMI cable plus one older hit game to some $359/359€. Then they could release a new SKU with WLAN, a 160GB HDD, a HDMI cable, four USB ports, memory card slots and a new hit game at some $449/449€. Or something. Details may vary but something like that could be a decent solution, though Sony would have to adapt a multi-SKU strategy which they haven't adapted very well yet.