I still don't get how could they save much with using 40 Gb HDD. 40 Gb HDD only saves Sony about 2-3 dollars MAX and dropping a couple of USB ports and card readers cost very little. Dropping Wi-fi would save some money but I've read it'd still be in. The only way this could drop production cost more than 10-15 bucks over 80 Gb SKU is by using cheaper components in everything which would hurt reliability a lot. Hopefully they don't go that way like MS has. Well, the other way would be by doing complete redesign but it is not yet possible because it is a long and expensive process.
I agree $399 PS3 would increase sales some but people could just think it as crippled model (like Core) and not buy it. It did happen to Sony already with 20Gb model.
Also 20 Gb & 60 Gb cost more to produce that 40 & 80 Gb but actual price difference is very small. They have saved much more by dropping EE which was actually the real motivation for new 80 Gb SKU.
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