Ok lets look at this again.
~70% (probably slightly less, they only used the word approximate. Could be anywhere 65% up) reduction - from what? I would assume the price of manufacturing the first batch of PS3's, this number could be higher than $1000 per unit.
The number of variables we don't actually know means that manufacturing could easily be up to $350 per unit still, I don't think we can claim that the PS3 cost $250. Especially when it seems such a stupidly low number considering how recently they were losing money.