| Squilliam said: If the Cell is being produced on behalf of Sony for the PS3, wouldn't economic theory dictate that much of the savings will be kept by the producer of that product? |
Read what I wrote. The manufacturer has to recoup his costs before he can lower his price significantly. If the manufacturer is sure he has a long term contract with the customer, he can determine the time frame to recoup the costs which utlimately determine the new price range he can charge. He can try to keep the price high if there is no competing manufacturer - that's just the way all business works. If he keeps the price up and the customer switches to another (now cheaper) manufacturer (even if this manufacturer still uses older technology), the original manufacturer risks of sitting on brand new equipment he can't use..
