tongue in cheek
We were able to achieve this amazing 70% cost reduction by removing PS2 backward compatibility, the flash memory card reader and 2 USB ports. We have also removed the Cell processor and RSX chip and bluray drive. We now fill every PS3 unit with a bucket of sand. We have also unbundled the dual shock controller. We also moved our production facility from China to a 4th world country that employs chimpanzees. But, we will start to include an HDMI cable with every PS3.
/tongue in cheek
If Sony is finally making money on the hardware, good for them. I'll be waiting for the PS3 slim if/when it comes out. I just hope it incorporates 45nm cell processor.