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For Europe, people forget that the PS3 was $600 in the USA WITH the EE chip.
Europe NEVER got that chip, and we were paying 600 €!!
So that means they were making europeans for more than $600 for less. And yes, even when you remove VAT and all, it still comes more like $680. That's for a crippled PS3 without the EE chip.
Beside, the PS3 is more than 9 months old, so I hope for them they reduced their costs.

I would not surprised to learn that they shaved off $200 from the Isupply estimates which were stupid to begin with (especially on the BluRay part).