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I believe initial reports pegged the ps3 at $850 or so. 30% of that would be $255. It's conceivable (barely) that the slim could cost that much to produce, factoring in the smaller chassis, 45nm processors, etc.

More likely it costs in the 300-350 range.  Let's say he rounded up from 65%.  A 65% reduction would put the current manufacturing price at roughly 300 even.