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Cadence said:
I think it's a good way to further increase sales and lose more money. I recall someone saying 40GB HDDs cost more than the 80GB HDD? Correct me if I'm wrong.

Theoretically, no it does not cost as much, but the difference wouldn't be that much.

-if- and this is a big if, Sony can aquire off the shelf 40GB HDD's or has an assembly line that produces them in house then yes 40GB would save a bit of cash per unit but no way near 100$.

In addition why would they remove backwards compatability? That's done with software at this point.. they patch it with firmware updates(correct me if I'm wrong), if they removed it, they'd have to do 2 seperate firmware updates or risk anomilies. It'd cost more rather then save them money..

 

Long story short, in theory YES 40GB < 60/80GB in cost if they don't have to open a production line to do it.