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hduser said:
Hmm, how about use an external power supply. You can simplify the packaging of the ps3 to make it smaller and cheaper cooling solution overall. It doesn't make sense to strip the bluray playback since the most of the money for that goes back to sony anyways. Of course getting better yields on the cell processor or RSX on a smaller die would help.

 

As you can see from my post above yours, I agree that the PSU should be external; but better yields on a smaller die costs a lot in terms of R&D, funds that Sony don't really have.

The only hope, really, is for IBM to get the Cell on a smaller chip, and nVidia for the graphics chip.