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I don't know about how companies proceed with FCC stuff, but some of the articles that have been floating on the $399 PS3 seem to point that it is in FCC testing. If it is, do electronic companies usually mass manufacture when it has not been approved by the FCC? I think that would put a $399 PS3 in the December/January time frame at the earliest as it would be risky to build hardware prior to FCC approval.

Also, didn't Kaz say that the PS3 needs more content before they work on price? That was less then two weeks ago, so how has that changed?

I think Sony is going to grin and bear what Christmas has to offer them. Ratchet & Clank looks to be a solid title, but it is probably not a system seller... In the new year, the slate will be clean and they can build on what they offered from Christmas which will hopefully include strong reviews to go with highly hyped first party and 3rd party games.