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NinjaBlade360 said:

first of i don't think this has any truth be hide it because it cost more to make a smaller hard drive and if they were to do a price drop it would be at Christmas time or when a major title gets release like god of war or gt5 and there still selling the regular ps3 at a loss of 130$

 

http://playstation.joystiq.com/2008/05/15/sony-could-be-losing-much-more-than-130-on-every-console-sold/

 

That links a year old.